J&J Beats on Light Revenues – Analyst Blog
Source: http://www.zacks.com/stock/news/19085/J%26J+Beats+on+Light+Revenues+-+Analyst+BlogPosted on Tuesday, April 14th, 2009 | In Market Commentary, Stocks to Watch
J&J Beats on Earnings, but Revenues Were Light
This morning Johnson & Johnson, Inc. (JNJ) reported financial results for the first quarter ending March 31, 2009.
Revenue for the quarter came in at $15.0 billion, about $521 million below our forecast and down 7.2% from the same period in 2008. Revenue was negatively impacted by 6% due to foreign exchange, while operational results fell by 1.2%. Consumer, Pharmaceutical and Medical Devices sales contracted by 8.7%, 10.1% and 2.9%, respectively, compared to the same period in 2008.
Consumer sales fell 1.0% operationally and 7.7% due to foreign exchange. Strong sales of Listerine, Neutrogena and Aveeno were offset by significant weakness in the OTC/Nutritionals segment. Pharmaceutical division sales fell 5.0% operationally and 5.1% due to foreign exchange.
Pharmaceutical results were largely inline with our expectations, with Concerta posting strong year-over-year growth while Risperdal and Procrit sales fell at an accelerated rate in the period. Medical Devices sales grew 3.1% operationally which was more than offset by 6.0% due to foreign exchange. Medical Devices results were impacted by significantly softer sales of diabetes/glucose monitoring test strips as consumers cut back on out-of-pocket purchases.
Despite the revenue shortfall, EPS on an adjusted basis was $1.26, compared to our forecast of $1.20. Earnings exceeded expectations due to significantly lower than forecasted SG&A and R&D spend in the quarter a well as stronger gross margin due to the affects of foreign exchange.
Management affirmed previously issued full-year 2009 EPS guidance of $4.45 – $4.55, excluding special items.
Read the full analyst report on “JNJ”
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