Johnson & Johnson Posts Higher Revenue and Profits
Johnson & Johnson (NYSE: JNJ – $98.95) announced sales of $18.1 billion for the first quarter of 2014, an increase of 3.5% as compared to the first quarter of 2013. Domestic sales increased 2.2% and revenue from international markets increased 4.5%, reflecting operational growth of 7.9%. Excluding special items, adjusted first-quarter earnings rose to $1.54 per share from $1.44. Most analysts were looking for JNJ to post a profit of $1.47 on revenue of $18 billion. Breaking down the numbers, the pharmaceutical business was the clear driver as revenue rose 11% to $7.5 billion. The segment’s growth included contributions from psoriasis treatment Stelara, with a sales increase of 32%, and long-lasting injectable antipsychotic Invega Sustenna, which posted a 31% rise in sales. Newer products with strong sales included prostate-cancer treatment Zytiga, up 49%. J&J’s consumer-products segment posted a sales decline of 3.2% to $3.6 billion, partly owing to recent divestitures. The medical devices segment, which includes the Synthes business, reported sales that were flat at $7.1 billion. For the year, the company lifted its per-share earnings estimate by a nickel to $5.80 to $5.90, excluding items, from its previous range for per-share profit between $5.75 and $5.85.