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Johnson & Johnson’s Q2 Profit Matches View, but Forecast Cut on Recalls (JNJ)

7/20/2010 9:00:00 AM
Referenced Stocks:JNJ

Health products maker Johnson & Johnson ( JNJ ) on Tuesday posted a second quarter profit that met analyst expectations, but lowered its full-year outlook for the second time, citing recent product recalls.

The New Brunswick, NJ-based company reported second quarter net income of $3.45 billion, or $1.23 per share, compared with $3.21 billion, or $1.15 per share, in the year-ago period. Excluding one-time items, adjusted profit was $1.21 per share.

Revenue edged less than 1% higher from last year, to $15.33 billion.

On average, Wall Street analysts expected a matching adjusted profit of $1.21 per share, albeit on higher revenue of $15.69 billion.

Looking ahead, the company cut its full-year forecast for the second time, citing recent recalls of certain over-the-counter medicines, as well as a plant suspension and currency effects. It now expects earnings of $4.65 to $4.75 per share for the year, while analysts are looking for $4.81.

Johnson & Johnson shares fell 97 cents, or -1.6%, in premarket trading Tuesday.

The Bottom Line
We have been recommending shares of JNJ since Oct.8, 2009, when the stock was trading at $60.71. The company has a 3.63% dividend yield, based on last night's closing stock price of $59.57.

Johnson & Johnson ( JNJ ) is a "recommended" dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .