J&J Lowers Guidance

Disappointing news today from Johnson & Johnson (JNJ). The company reported Q2 earnings of $1.21 per share which was in line with estimates. For last year’s Q2, JNJ made $1.11 per share. Revenue rose just 0.6% which was below forecasts.
The big issue is that they lowered their full-year range from $4.80 to $4.90 per share down to $4.65 to $4.75 per share. That’s a decrease of 15 cents at both ends.

The Company’s guidance now reflects the impact of the voluntary recalls announced earlier this year of certain over-the-counter medicines and the suspension of manufacturing at the McNeil Consumer Healthcare facility in Fort Washington, Pa., as well as unfavorable changes in foreign currency exchange rates.

Frankly, this could have been a lot worse. The stock is lower ahead of the open. Gilead Sciences (GILD) and Stryker (SYK) are due to report their earnings later today.
Here are some other major earnings reports this morning:
Harley-Davidson 2Q income jumps, sales drop eases
PepsiCo’s 2Q net income slumps 3 pct on currency
UnitedHealth’s 2Q profit rises 31 percent
Goldman Sachs Profit Drops 82%, Missing Analysts’ Estimates
BNY Mellon Earnings Triple as Stock Rebound Boosts Fees
I’m impressed to see UNH raise full-year earnings guidance. The company expects full-year EPS to range between $3.40 and $3.60, which is 25 cents above the previous range of $3.15 and $3.35. The shares are just below $31.

Posted by on July 20th, 2010 at 8:23 am


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