Reuters

(Reuters)

J&J's 2016 Sales to Miss Analysts' Estimates

Industries Reuters

Johnson & Johnson forecast 2016 sales below analysts' estimate and reported a 2.4 percent drop in sales for the fourth quarter, hurt by a strong dollar.

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The company, which got almost half of its revenue from outside the United States in 2015, said it expects 2016 full-year sales of $70.8 billion-$71.5 billion.

Analysts on average were expecting sales of $71.88 billion, according to Thomson Reuters I/B/E/S.

The dollar index, which measures the currency against a basket of six other major currencies, rose 9 percent in 2015, after rising 13 percent in 2014.

The company's net earnings rose about 28 percent to $3.22 billion, or $1.15 per share, in the fourth quarter.

On an adjusted basis, the company earned $1.44 per share, above analysts' average estimate of $1.42.

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Sales fell to $17.81 billion, but was largely in-line with the average analyst estimate of $17.88 billion.

The band-aid maker, which said last week it would cut about 3,000 jobs within its struggling medical devices unit over the next two years, said it expects adjusted earnings of $6.43-$6.58 per share for 2016.

Analysts on average were expecting earnings of $6.38 per share.

(Reporting by Ankur Banerjee in Bengaluru; Editing by Sriraj Kalluvila)