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Johnson & Johnson Q1 Adjusted EPS Tops Estimations, Boosts Full Year Outlook

Johnson & Johnson disclosed that its net earnings were $4.3 billion or earnings of $1.54 per share for the first quarter. The results of both the periods included after-tax intangible amortization expenses and other items. Excluding special items, its adjusted net earnings were $4.7 billion or adjusted earnings of $1.68 per share for the first quarter. That represented 6.1 percent and 7.7 percent year-over-year growth respectively. The FMCG firm claimed that its adjusted EPS increased 10.3 percent on an operational basis.

Analysts predicted the company to earn $1.65 a share.

Johnson & Johnson said sales rose 0.6 percent to $17.5 billion, which was in line with the Street analysts' estimations of $17.48 billion. The company indicated its operational sales grew 3.9 percent and the unfavorable impact of currency was 3.3 percent. While the domestic sales increased 7.2 percent, International sales fell 6.0 percent, reflecting the operational growth of 0.6 percent and a negative currency impact of 6.6 percent.

The company said that on an operational basis, worldwide sales grew 6.9 percent with domestic sales growing 9.8 percent and international sales increasing 3.8 percent. The company stated the currency devaluation in Venezuela unfavorably impacted its worldwide operational sales growth by 60 basis points and that of international sales growth by 1.2 percentage points.

Johnson & Johnson Chairman and CEO, Alex Gorsky, commented, "We are off to a strong start to the year, supported by our first quarter underlying sales growth. Our Pharmaceuticals business continues to deliver impressive levels of growth, we have steady improvement in our Consumer business, and we are seeing momentum in our Medical Devices businesses, all of which are fueling our optimism for the full-year ahead."

Gorsky continued, "I am proud of our global teams for their contributions to these results and their commitment to developing innovative solutions that address the unmet health care needs of people around the world."

Moving ahead, the company updated its sales outlook for the current year to $71.2 - $71.9 billion. Similarly, the company boosted its adjusted earnings forecast to $6.53 - $6.58 a share. Street analysts expect earnings of $6.54 a share on revenues of $71.55 billion.

Read more: http://www.benzinga.com/news/earnings/16/04/7855128/johnson-johnson-q1-adjusted-eps-tops-estimations-boosts-full-year-outloo#ixzz46H5qT3Ol