Johnson & Johnson Earnings Beat Estimates

Updated from 8:12 a.m. EDT

Health care products giant Johnson & Johnson (JNJ Quote) reported flat first-quarter earnings Tuesday, beating Wall Street estimates, despite lower sales across all three of the company's major business lines.

Johnson & Johnson earned $3.5 billion, or $1.26 a share in the first quarter, down from net income of $3.6 billion, or $1.26 a share, in the year-ago quarter.

Revenue fell 7.2% to $15 billion from $16.19 billion.

Analysts expected a profit of $1.22 a share on revenue of $15.43 billion, according to Thomson Reuters.

The company confirmed its earnings guidance for 2009 in the range of $4.45 to $4.55 a share, which excludes the impact of special items.

"Despite challenging economic and near-term business pressures, we continue to deliver solid financial results," said CEO William Weldon, in a statement.

Prominent in the Johnson & Johnson's first-quarter revenue drop was a 10.1% slide in sales from the company's pharmaceuticals business to $5.8 billion. Domestic sales decreased 9.7%, while international sales decreased 10.7%, partly a result of negative currency impact.

Consumer products sales fell 8.7% to $3.7 billion vs. the prior year. Domestic sales decreased 5.1%, while international sales decreased 11.6%, also partly a result of negative currency impact.

Sales in the company's medical device and diagnostics division totaled $5.5 billion, down 2.9% from the prior year.

Johnson & Johnson shares closed Monday at $51.15 and were rising 1.7% to $52 in premarket trading.

Diversified health care products maker Abbott Labs (ABT Quote) reports first-quarter results Wednesday, while pharmaceutical giants Eli Lilly (LLY Quote) and Merck (MRK Quote) report next week.