Johnson & Johnson Q1 Profit Falls 23%, but Still Beats View (JNJ)
Healthcare products giant Johnson & Johnson ( JNJ ) on Tuesday said its profit fell 23% from last year on several one-time items, but adjusted results easily beat analysts' view.
The New Brunswick, NJ-based company reported first quarter net income of $3.48 billion, or $1.25 per share, compared with $4.53 billion, or $1.62 per share, in the year-ago period. Excluding special items, adjusted profit was $1.35 per share.
Revenue rose 3.5% from last year to $16.17 billion.
On average, Wall Street analysts expected a much smaller profit of $1.03 per share on lower revenue of $15.6 billion.
Looking ahead, the company boosted its full-year earnings outlook to a range of $4.90 to $5 per share, compared with a prior range of $4.80 to $4.90. Analysts are looking for $4.85 per share for the year.
Johnson & Johnson shares rose $1.33, or +2.2%, in premarket trading Tuesday.
The Bottom Line
Shares of Johnson & Johnson ( JNJ ) have a 3.57% dividend yield, based on last night's closing stock price of $60.46. This former recommendation is a name we are watching closely to see if their recent manufacturing problems have subsided. The stock has technical support in the $57-$58 price area. If the shares can firm up, we see overhead resistance around the $63-$64 price levels.
Johnson & Johnson ( JNJ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.