Tuesday, drug major Johnson & Johnson (JNJ) reported a 3.6% drop in profit for the second quarter, reflecting sales declines across all business segments and geographies. However, earnings per share as well as top line beat market projections. Further, the company backed its fiscal 2009 adjusted earnings forecast.
Second-quarter net earnings declined to $3.21 billion from last year's $3.33 billion. On a per-share basis, earnings fell 1.7% to $1.15 from $1.17 in the same quarter of last year.
The prior-year results included an after-tax in-process research and development charge of $40 million. Excluding this charge, net earnings would have decreased 4.7% and earnings per share 2.5% from last year's $3.37 billion and $1.18 per share, respectively.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.11 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter were $15.24 billion, down 7.4% from $16.45 billion in the year-ago quarter, yet topped twelve analysts' consensus revenue estimate of $15.02 billion for the quarter.
In the quarter, operational results declined 1.4% and the negative impact of currency was 6.0%. Domestic sales declined 6.7% year-over-year to $7.66 billion, while international sales dropped 8% to $7.58 billion, reflecting operational growth of 3.9% and a negative currency impact of 11.9%.
The company noted that worldwide consumer sales was $3.9 billion for the second quarter, down 4.5% from last year. Worldwide Pharmaceutical sales dropped 13.3% year-over-year to $5.5 billion. Medical Devices and Diagnostics sales were $5.9 billion, down 3.1% from the previous year.
Further, Johnson & Johnson confirmed its earnings guidance for fiscal year 2009 of $4.45 to $4.55 per share, which excludes the impact of special items. Analysts currently expect the company to report earnings of $4.51 per share for fiscal 2009, with estimates ranging between $4.46 and $4.60 per share, in comparison to prior year's reported earnings of $4.55 per share.
JNJ closed Monday's regular trading session at $57.72, up $0.79, on a volume of 13.6 million shares. In the past 52 weeks, shares have been trading in a broad range of $46.25 to $72.76.
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