Johnson & Johnson logs Q1 earnings beat, sales miss

Johnson & Johnson (NYSE:JNJ) topped Wall Street’s earnings forecast with its 1st-quarter results, but missed the sales expectation by more than a quarter billion dollars.

Still, the New Brunswick, N.J.-based healthcare conglomerate raised its outlook for the rest of the year based on the impact of its pending $30 billion acquisition of Swiss biotech firm Actelion (VTX:ATLN).

J&J posted overall profits of $4.42 billion, or $1.61 per share, on sales of $17.77 billion for the 3 months ended March 31, for flat growth on the bottom line and a 1.6% sales bump compared with Q1 2016. Adjusted to exclude 1-time items, earnings per share were 7¢ ahead of The Street at $1.83 apiece, but sales fell short of the consensus $18.03 billion outlook.

“Johnson & Johnson’s 1st-quarter results are in line with our expectations and we are confident we will achieve the full-year financial guidance we established at the beginning of the year. The pending acquisition of Actelion demonstrates our ongoing commitment to bringing innovation to patients with significant unmet needs, and provides a unique opportunity for us to expand our portfolio with leading, differentiated in-market medicines and promising late-stage products,” chairman & CEO Alex Gorsky said in prepared remarks.

Johnson & Johnson said it now expects to report adjusted EPS of $7.12 to $7.27 this year, up from prior guidance of $6.93 to $7.08. Full-year sales are now pegged at $76.1 billion to $76.8 billion, compared with $74.1 billion to $74.8 billion previously.

JNJ shares ticked down -0.9% to $124.60 apiece today in pre-market trading.

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