Healthcare giant Johnson & Johnson (JNJ) Tuesday said profit in the first quarter dropped from last year, but results topped expectations on strong pharmaceutical sales.
Net earnings fell to $3.5 billion or $1.22 per share from last year's $3.91 billion or $1.41 per share. However, the firm was able to back its full year profit forecast.
The latest results included after-tax special items of about $600 million, related to setting lawsuits and its acquisition of Synthes.
Also, the year-ago results included a notable gain from an after-tax special item.
Adjusted net earnings $1.44 per share, while it was $1.37 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings per share of $1.40 for the quarter. Analysts' estimates typically exclude one-time items.
Sales advanced 8.5 percent to to $17.51 billion from $16.14 billion, beating consensus estimates of $17.44 billion.
Alex Gorsky, CEO, said, "We delivered solid first quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopaedics business. Also of note is the growth in our over-the-counter medicines business as we continue to make progress in returning a reliable supply of high quality products to our customers."
Worldwide Pharmaceutical sales increased 10.4 percent to $6.8 billion. While Domestic sales increased 14.7 percent, International sales climbed 6.1 percent.
The division's sales benefited from antipsychotic Invega Sustenna/Xeplion, psoriasis drug Stelaria, rheumatoid arthritis medicine Simponi, as well as Remicade, approved for the treatment of immune-mediated-inflammatory diseases and HIV treatment Prezista.
Worldwide Medical Devices and Diagnostics sales climbed 10.2 percent to $7.1 billion, primarily due to the acquisition of Synthes, Inc.
Worldwide Consumer sales rose 2.2 percent to $3.7 billion with positive contributions from TYLENOL and MOTRIN analgesics and upper respiratory over-the-counter medicines as well as baby care products, LISTERINE mouthwash and NEUTROGENA skin care products.
Product-wise, Remicade sales advanced 5.2 percent to $1.60 billion. Newly launched prostate cancer drug Zytiga's sales surged 72 percent to $344 million. Oral anticoagulant Xarelto's sales increased to $158 million from $27 million. Geographically, the U.S. saw an 11.2 percent increase in sales. International sales rose 6.3 percent with 6.8 percent growth each in Europe and Asia-Pacific, Africa, while Western Hemisphere excluding U.S. saw a 4 percent increase.
In addition, the company confirmed its full year adjusted earnings guidance of $5.35 to $5.45 per share. Analysts project annual earnings of $5.40 per share.
JNJ closed at $81.71 on Monday. The stock is gaining 0.6 percent in pre-market activity.
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