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Johnson & Johnson Q1 Profit Jumps 29% on One-Time Gains (JNJ)
Health care products maker Johnson & Johnson ( JNJ ) said Tuesday that its first quarter profit surged 29% from last year, helped mainly by one-time gains, as adjusted results beat analyst expectations.
The New Brunswick, NJ-based company reported first quarter net income of $4.53 billion, or $1.62 per share, compared with $3.51 billion, or $1.26 per share, in the year-ago period. Excluding a $910 million one-time gain tied to a litigation case, adjusted profit was $1.29 per share.
Sales rose 4% from last year, to $15.63 billion, helped by more favorable currency exchange rates.
On average, Wall Street analysts expected a smaller profit of $1.27 per share, on slightly lower sales of $15.6 billion.
Looking ahead, the company cut its 2010 full-year earnings forecast to a range of $4.80 to $4.90 per share, down from prior estimates for $4.85 to $4.95 per share.
Johnson & Johnson shares rose 23 cents, or +0.4%, in premarket trading Tuesday.
The Bottom Line
We have been recommending shares of JNJ since Oct.8, when the stock was trading at $60.71. The company has a 2.97% dividend yield, based on last night's closing stock price of $66.03.
Johnson & Johnson ( JNJ ) is a "recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.