J&J Beat by a Penny

Johnson & Johnson (JNJ) earned 99 cents a share, one penny more than the Street was specting. The company reiterated its forecast of $3.65 to $3.72 for this year.

Johnson & Johnson’s first-quarter profit jumped 17 percent, mainly due to a big termination fee from its failed attempt to acquire heart device maker Guidant Corp., while revenues were hurt by exchange rates and generic competition to some former blockbuster drugs.
The world’s most diversified health products maker on Tuesday reported net income grew to $3.31 billion, or $1.10 per share, from $2.84 billion, or 94 cents per share, a year ago.
The results included a termination fee, worth $622 million, or 12 cents per share, paid by Indianapolis-based Guidant after it accepted Boston Scientific Corp.’s takeover bid instead of J&J’s earlier in the quarter.
Excluding that fee and a 1 cent-per-share charge for two acquisitions, Johnson & Johnson’s income would have been $2.97 billion, or 99 cents per share, for the latest quarter. That beat by a penny the consensus forecast of analysts surveyed by Thomson Financial.
J&J, which makes everything from contact lenses and contraceptives to baby shampoo and skincare products, said revenue rose 1 percent to $12.99 billion from $12.83 billion last year. Analysts had been expecting sales of $13.2 billion.
Generic competition reduced sales of drugs including anti-fungal medicine Sporanox, painkiller Ultracet and Duragesic, a skin patch for chronic pain.
Chief financial officer Robert J. Daretta said despite continuing pressures from generics and currency fluctuations, results should pick up, forecasting operational growth of about 8 percent for the next three quarters.
“We very much are looking forward to a year of accelerating growth on both the top and bottom line,” Daretta told analysts during a conference call.

Posted by on April 18th, 2006 at 12:56 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.