Johnson & Johnson earnings: A quarter only a mother could love

The headline on the Johnson & Johnson (NYSE:JNJ) earnings release says that revenue rose 13.2%. It did, but it didn't. Adjusting the numbers for the company's purchase of Pfizer's (NYSE:PFE) consumer health business and sales were only up 3.2% to $15.1 billion.

A quick look at the company's segment data shows a more accurate picture. JNJ's pharma division revenue rose 5.8% to $6.1 billion. The company's medical device units, which includes stents, had a revenue increase of 5.1% to $5.4 billion. US growth in the unit was only 1.1%.

A few of the company's key drugs like PROCRIT lost ground. Its sales fell 6% to $758 million. Sales of DURAGESIC were down 14% to $289 million.

While the company showed pro forma figures of its consumer division to demonstrate the benefits of the Pfizer deal, it would appear that they too were underwhelming. If the company's total sales rose 3.2% with Pfizer numbers included in both years and JNJ's two other big divisions up over 5%, the consumer segment must not have done very well.

JNJ stock is down 1.3% to $63. That's what fuzzy numbers will get you.

Douglas A. McIntyre is a partner at 24/7 Wall St.