Johnson & Johnson Q3 Profit Down

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The FINANCIAL — Johnson & Johnson reported that its net earnings for the third quarter of 2015 declined to $3.36 billion or $1.20 per share from $4.75 billion or $1.66 per share in the same quarter last year, according to Nasdaq.

Third quarter 2015 net earnings included after-tax intangible amortization expense of approximately $0.4 billion and a charge for after-tax special items of approximately $0.4 billion. Third quarter 2014 net earnings included after-tax intangible amortization expense of approximately $0.3 billion and a net gain for after-tax special items of approximately $0.4 billion.

Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the latest-quarter were $4.2 billion and adjusted earnings per share were $1.49, representing decreases of 9.4% and 7.5%, respectively, as compared to the same period in 2014. On an operational basis, adjusted earnings per share increased 1.2%. Analysts polled by Thomson Reuters expected the company to report earnings of $1.45 per share for the quarter. Analysts’ estimates typically exclude special items.

Quarterly sales were $17.1 billion for the third quarter of 2015, a decrease of 7.4% as compared to the third quarter of 2014. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 5.6%, domestic sales increased 7.7% and international sales increased 3.8%. Wall Street expected revenues of $17.45 billion for the quarter.

The company increased its adjusted earnings guidance for full-year 2015 to $6.15 – $6.20 per share. Analysts expect annual earnings of $6.16 per share. The company said in July that it expected adjusted earnings to be in the range of $6.10 to $6.20 per share.

Earlier on October 13, the company also announced its Board of Directors has approved the repurchase of up to $10 billion of the company’s common stock.

 

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