Updated from 3:12 p.m. EST
Johnson & Johnson's (JNJ) shares closed to the downside Tuesday amid a weak forecast from the company and a down day overall for the U.S. stock market.
The New Jersey-based drug and consumer-products giant predicted earnings for 2009 of $4.45 to $4.55 a share, which excludes the impact of certain items, but includes a reduction of 3 cents to 5 cents from the pending acquisition of Mentor (MNT). On average, analysts surveyed by Thomson Reuters are calling for $4.61.
J&J's outlook came as the company reported fourth-quarter earnings of $2.7 billion, or 97 cents a share. Before items, the company would have earned 94 cents, 2 cents better than expectations. In the same quarter last year, J&J had a profit of $2.4 billion, or 82 cents a share.Worldwide sales in the quarter fell 4.9% year over year to $15.2 billion, a decline that was primarily attributable to unfavorable exchange rates, and missed Wall Street's $15.9 billion consensus estimate. Sales rose 4.3% for the full year to $63.7 billion, and adjusted earnings were $4.55 a share. Shares of J&J closed down 69 cents, or 1.2%, to $56.75, after at one point being one of only four stocks in the Dow Jones Industrial Average that was up for the day, along with Merck (MRK), AT&T (T) and Verizon (VZ). J&J peers Pfizer (PFE) and Procter & Gamble (PG) were slightly lower.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV