Johnson & Johnson Trims 2012 Forecast

by Christopher Freeburn | July 17, 2012 10:06 am

Johnson & Johnson Trims 2012 Forecast

Consumer products giant Johnson & Johnson (NYSE:JNJ[1]) lowered its guidance for the rest of the year this morning[2]. It trimmed its estimated 2012 EPS from earlier forecasts of between $5.05 and $5.15 per share, down to a range between $5 and $5.07 per share, citing the impact of a strengthening U.S. dollar on international sales.

Johnson & Johnson also reported second-quarter net earnings of $1.41 billion, down nearly 50% from $2.78 billion during the same time last year.

Adjusted net income, which excludes the costs of its $20 billion acquisition of Synthes and other one-time charges, was $3.63 billion. Adjusted EPS for the quarter was $1.30, which narrowly topped analysts’ forecast of $1.29, the Associated Press noted.

Revenue for the quarter declined 0.7% compared to last year, coming in at $16.71 billion.

Investors were unimpressed. Shares of Johnson & Johnson slipped about 1% in early Tuesday trading.

The company has been hit with a series of expensive product recalls recently[3], due to quality control problems at its production facilities.

Endnotes:
  1. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  2. lowered its guidance for the rest of the year this morning: http://www.washingtonpost.com/business/johnson-and-johnson-2q-net-income-falls-by-half-on-sales-dip-litigation-and-other-charges/2012/07/17/gJQAjNPqqW_story.html
  3. a series of expensive product recalls recently: http://investorplace.com/2012/04/will-johnson-johnson-jnj-rise-from-the-ashes/

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