Johnson & Johnson's Stock Falls After Sales Miss Offset Profit Beat And Raised Outlook

By Tomi Kilgore Markets MarketWatch Pulse

Johnson & Johnson's stock shed 1% in premarket trade Tuesday, after the drug and consumer products giant reported first-quarter profit that beat expectations but sales that missed. Net earnings came to $4.42 billion, or $1.61 a share, compared with $4.46 billion, or $1.59 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share were $1.83, above the FactSet consensus of $1.77. Revenue rose to $17.77 billion from $17.48 billion, below the FactSet consensus of $18.02 billion, as a slight beat in medical device revenue was offset by misses in consumer and pharmaceutical sales. The company raised its 2017 adjusted EPS outlook to $7.00 to $7.15 from $6.93 to $7.08, and its revenue guidance to $75.4 billion to $76.1 billion from $74.1 billion to $74.8 billion. The stock has rallied 9.1% year to date through Monday, while the Dow Jones Industrial Average has gained 4.4%.

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