JNJ Earns $1.03 Per Share

Johnson & Johnson (JNJ) released earnings this morning and they were a very slight disappointment. The company earned $1.03 per share which was inline with expectations.

Technically, the company earned 70 cents per share, but the company’s net was dragged down by recall and litigation costs.

J&J’s McNeil Consumer Healthcare division has recalled more than 40 brands of over- the-counter medicines, including Tylenol and Rolaids, since late 2009, and the company removed orthopedic implants last year. J&J said the consumer recalls cut 2010 sales by about $900 million dollars, about $300 million more the company projected in July.

The recalls made 2010 a “difficult and disappointing” year, Chief Executive Officer William Weldon said on a conference call with analysts. J&J is in the midst of an “uncompromising effort” to improve quality and restore trust in its brands, he said.

“If those reviews reveal any further issues, we will not hesitate to take any action that is needed,” Weldon said.

Johnson & Johnson also released their earnings estimate for this year: $4.80 to $4.90 per share. Wall Street had been expecting $4.98 per share, so this was a bit below expectations.

The stock is down about $1 per share this morning. Today’s news is disappointing but not earthshaking. JNJ is the bluest of the blue chips so I see any pullback as a good opportunity to buy.

Posted by on January 25th, 2011 at 10:20 am


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