Johnson & Johnson Narrows 3Q Profit, But Beats Street

Johnson & Johnson’s (NYSE:JNJ) third-quarter profit narrowed during the period on over-the-counter production disruptions that led to a decline in U.S. sales, however the company still trumped Wall Street's views on international gains.

Revenue for the three-month period was $16 billion, up 6.8% from $14.9 billion in the same quarter last year. The results virtually matched average analyst estimates polled by Thomson Reuters of $16.02 billion.

J&J’s chief executive, William Weldon, partly attributed the company’s sales gains during the period to strong demand for its recently launched products, such as zytiga, a treatment of prostate cancer, as well as a weaker dollar that improved sales abroad.

Manufacturing suspensions at the McNeil Consumer Healthcare facility in Pennsylvania led to significantly impacted U.S. sales of over-the-counter medicines during the period, the company said. However, a sharp 16.4% increase in international sales helped to offset the 3.7% decline in domestic sales.

The New Brunswick, N.J.-based consumer care giant posted net earnings of $3.2 billion, or $1.15 a share, compared with $3.4 billion, or $1.23 a share, in the same quarter last year. Excluding one-time items, the company earned $1.24 a share, beating the Street's view of $1.21.

For the fiscal year, J&J updated its guidance, now expecting earnings in the range of $4.95 to $5 a share, which is slightly higher than its earlier view. Wall Street is expecting a profit of $4.96 a share.