Johnson & Johnson Falls Despite Q4 Earnings Beat

Posted Jan 26th 2010 4:40PM by Trey Thoelcke
Filed under: Earnings Reports, Johnson and Johnson (JNJ)

An hefty restructuring charge -- its biggest ever -- led to a 19% year-over-year earnings drop for Johnson & Johnson (JNJ). Excluding these charges, the New Jersey-based health care products giant earned $2.8 billion, or $1.02 per share for the fourth quarter and $4.63 per share for the full year. That topped Wall Street estimates for quarterly earnings of $0.97 per share and $4.55 per share for the full year.

Johnson & Johnson also reported fourth quarter sales of $16.6 billion, up 9.0% from a year ago, and again topping expectations. But sales for the full year totaled $61.9 billion, which was 2.9% lower.

CEO William Weldon said, "We made important investments in acquisitions, strategic partnerships and launches of recently approved innovative products while preserving our financial flexibility to continue to invest in innovation. This positions us well for continued leadership and growth in global health care as we enter 2010."

The maker of baby shampoo, Listerine and Tylenol offered 2010 earnings guidance in the range of $4.85 to $4.95 per share, as well as revenue of $64 billion to $65 billion.

The weak guidance pushed shares lower Tuesday. JNJ has retreated from a recent 52-week high of $65.95 and closed Tuesday at $62.79.

Tags: inthenews, JNJ, Johnson and Johnson, William Weldon