Johnson & Johnson beat analysts’ fourth-quarter expectations and gave its financial forecast for this year.
J&J forecast 2019 earnings of between $8.50 and $8.65 per share and revenue in the range of $80.4 billion to $81.2 billion. Analysts previously said they expected earnings $8.60 per share and $82.69 billion in revenue, according to Refinitiv.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.97, adjusted, vs. $1.95 expected
- Revenue: $20.4 billion vs. $20.2 billion expected
In the fourth quarter, Johnson & Johnson reported net income of $3.04 billion, or $1.12 per share, up from a loss of $10.7 billion, or a loss of $3.99 per share a year earlier due to amortization expenses and special items.
Excluding an amortization expense of $1 billion and a net charge for special items of $1.4 billion, J&J earned $1.97 per share, above the $1.95 per share expected by analysts surveyed by Refinitiv.
Net sales rose 1 percent to $20.4 billion, above expectations of $20.2 billion.
J&J’s usually steady stock has been under pressure recently. A December report from Reuters said J&J knew for decades its talc baby powder contained asbestos. The company has repeatedly denied any wrongdoing and stands behind its namesake baby powder.
Since Reuters published its report, J&J shares have fallen by about 9.5 percent. Analysts called the selloff overdone, saying any litigation risk would cost less than the billions of dollars J&J lost in market cap.
