J&J's Earnings Win Muted By Currency Impact (JNJ)

DJIA component Johnson & Johnson (NYSE: JNJ) has come out with earnings slightly ahead of estimates.  The medical and consumer products giant posted $1.15 EPS vs $1.11 estimates and revenues were down 7.4% to $15.2 billion vs. 15.02 billion estimates.  Currency was another drag on the company.

As far as the impact of currency, this was sharp.  Operational results were down 1.4% and the impact of currency was negative by 6.0%.  Operational growth of sales was roughly 3.9%, reflecting a negative currency impact of 11.9%.

Despite the beat on earnings, this marks a 6.7% drop in domestic sales and marks a 8% drop in international sales.  Consumer product sales were down 4.5%.

J&J is also backing its annual outlook of $4.45 to $4.55 EPS for 2009.  Thomson Reuters has estimates  of $4.51.

Shares closed at $57.72 yesterday, and pre-market indications are up over $58.50.  Its 52-week trading range is $46.25 to $72.76.

JON C. OGG
JULY 14, 2009