By Tess Stynes
Johnson & Johnson reported fourth-quarter sales slipped 0.6%
as growth in its domestic pharmaceutical revenue wasn't enough to
offset a drag on its international revenue from a stronger U.S.
dollar.
The health-care giant's shares fell about 1% in recent premarket
trading, even though per-share earnings, excluding one-time
charges, beat analysts's expectations.
For 2015, the company forecast adjusted per-share earnings
between $6.12 and $6.27. Analysts polled by Thomson Reuters
recently expected per-share profit of $6.13.
The New Brunswick, N.J., company's sales have been propelled by
newer drugs--such as diabetes drug Invokana, blood-thinner Xarelto
and psoriasis treatment Stelara--as J&J strives to revive its
consumer and medical-devices businesses.
J&J's hepatitis C drug, Olysio, also had been contributing
to the growth but was expected to drop off as the result of growing
competition. In the latest period Olysio sales reached $256 million
in the U.S., above analysts's expectations, but below the $671
million in the third quarter.
The company's total revenue decreased to $18.25 billion from
$18.36 billion, and below the average analyst estimate of $18.56
billion on Thomson Reuters.
During the latest quarter, J&J's total pharmaceutical sales
rose 9.6% to $8 billion. Domestic pharmaceutical sales increased
23% to $4.36 billion. International pharmaceutical sales dropped
2.7% to $3.64 billion, but excluding currency impacts, sales abroad
grew 5.8%.
Excluding currency impacts, world-wide sales of Stelara rose 35%
in the latest quarter. U.S. sales of Xarelto surged 58% to $428
million.
Overall J&J reported a profit of $2.52 billion, or 89 cents
a share, compared with $3.52 billion, or $1.23 a share a year
earlier. Excluding an increase in litigation-related items,
integration costs and other items, per-share earnings rose to $1.27
from $1.24 and above the average analyst estimate of $1.26 a
share.
The company's consumer-products segment posted revenue decline
of 3.9% to $3.61 billion, mostly because of the negative impact of
foreign-exchange rates on international sales. U.S. consumer sales
increased 2.5%.
The medical-devices business recorded a sales drop of 9% to
$6.65 billion, hurt by currency impacts and the divestiture of its
diagnostics business last year.
Write to Tess Stynes at tess.stynes@wsj.com
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