Johnson & Johnson Tops Forecasts on Lower Profit

by Christopher Freeburn | October 16, 2012 10:55 am

dependable dividend stocks 200x195 Johnson & Johnson Tops Forecasts on Lower Profit[1]Johnson & Johnson (NYSE:JNJ[2]) announced on Tuesday that it earned $2.97 billion during the third quarter[3], down 7% from $3.2 billion in the same period last year. Adjusted EPS came in a $1.25, beating Wall Street forecasts of $1.21, the Associated Press noted.

The consumer products giant saw quarterly revenue increase 6.5% to $17.05 billion. That narrowly topped analysts, who had expected revenue of $17.01 billion.

Shares of Johnson & Johnson rose more than 1% in Tuesday morning trading.

Company officials raised their full-year earnings guidance. They now expect a profit of between $5 and $5.10 a share for the year. That’s up slightly from earlier estimates of between $5 and $5.07 a share.

Company officials noted that earnings had been reduced by one-time charges relating to research. The $19.7 billion acquisition of Synthes[4], a medical equipment maker, in June increased overall revenues by almost 6%. Medical equipment sales surged to $7.07 billion, up 12.5% after the Synthes addition.

Consumer health product sales declined 4.3%, while prescription drug sales rose 7%.

Johnson & Johnson is member of InvestorPlace’ list of Dependable Dividends Stocks[5], which are rock-solid when it comes to preserving capital and making regular dividend payments.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/05/dependable-dividend-stocks-200x195.jpg
  2. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  3. during the third quarter: http://www.washingtonpost.com/business/johnson-and-johnsons-q3-net-income-drops-7-percent-as-increased-costs-offset-sales-growth/2012/10/16/b6942db6-178a-11e2-a346-f24efc680b8d_story.html
  4. acquisition of Synthes: http://investorplace.com/2012/04/europe-approves-jjs-21-3b-synthes-purchase/
  5. Dependable Dividends Stocks: http://investorplace.com/dividend-paying-stocks/

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