Updated from 9:13 a.m. EDT
Johnson & Johnson
exceeded Wall Street's earnings expectations by a penny in the first quarter but missed sales estimates by around $200 million, the company reported Tuesday.
J&J earned $3.3 billion, or $1.10 a share, in the first three months of the year. Sales were $13 billion, up 1.2% from a year ago, but short of the $13.2 billion analysts expected. The analysts surveyed by Thomson First Call expected J&J to report $13.2 billion in sales.
The first-quarter results included a gain of $368 million from the termination of the acquisition agreement with heart-device maker
, as well as charges of $29 million from J&J's acquisitions of Hand Innovations and Future Medical Systems.
J&J lost Guidant in a bidding war with
that ended this past January.
Excluding those items, the company earned $3 billion, or 99 cents a share, compared with analysts' consensus forecast of 98 cents. Shares of J&J were up 23 cents, or 0.4%, to $57.88.
"Our first-quarter results were as anticipated, and we look forward to improving performance throughout the balance of the year," said William C. Weldon, J&J's chairman and chief executive.
Worldwide sales of medical devices brought in $5 billion in the quarter, up 4.5% from a year ago. The Cordis Cypher stent was a primary contributor to the increase, the company said. Pharmaceutical sales totaled $5.6 billion in the quarter, a 2.2% drop from the same quarter of last year, in part because of generic competition for the Duragesic pain patch, the painkiller Ultracet and the antifungal drug Sporanox.
Meanwhile, sales were strong for the antipsychotic drug Risperdal, Remicade for inflammatory diseases, the antiepileptic drug Topamax and the attention deficit hyperactivity disorder medication Concerta.
Consumer products accounted for $2.4 billion in revenue during the quarter, a 3.3% increase over the prior year thanks to strong sales of skin-care products.
J&J reiterated its earnings guidance for the full year, saying profits per share should grow in the 8% to 10% range. That would put the bottom line around $3.65 to $3.72 a share, bracketing the consensus projection of $3.67.
While sales are expected to improve during the remainder of the year, according to Bob Daretta, J&J's chief financial officer, pharmaceutical sales will probably continue to be impacted by the availability of generic versions of some of its name-brand drugs.