Johnson & Johnson (NYSE: JNJ) on Tuesday reported first-quarter earnings that beat analysts’ estimates. The health-care giant also raised its guidance for the year as strong sales of its pharmaceuticals division.
The company said that net income fell to $4.29 billion, or $1.54 a share, from $4.32 billion, or $1.53 a share, a year earlier. Excluding certain items, earnings were $1.68 a share for the quarter ended in March. The result topped analysts’ estimates. Analysts surveyed by S&P Global Market Intelligence had projected earnings of $1.65 a share.
Revenue in the first-quarter rose 0.6 percent to $17.48 billion, compared with analysts’ estimate of $17.49 billion. Lower-than-expected revenue was hurt by strong dollar.
Strong growth in pharmaceutical sales offset the declining sales in Medical-device unit and Consumer sales unit. The company said worldwide pharmaceutical sales increased 5.9 percent to 8.2 billion for the first quarter. Medical-device sales declined 2.4 percent to $6.1 billion while consumer sales fell 5.8 percent to $3.2 billion.
Thanks to strong sales in pharmaceutical unit, the New-based company raised its sales guidance for 2016 to $71.2 billion to $71.9 billion, a little higher than the previous guidance of $70.8 billion to $71.5 billion.
The company also planed to trim its medical devices unit. The company said in January to cut about 3,000 jobs in this unit, representing 4 to 6 percent of total positions.
“Our pharmaceuticals business continues to deliver impressive levels of growth, we have steady improvement in our consumer business, and we are seeing momentum in our medical-devices businesses, all of which are fueling our optimism for the full year ahead,” Company’s Chief Executive Alex Gorsky said.
J&J shares rose 1.5 percent to $112.59 at 2:13 P.M. in New York.