Quarterly revenue checked in at $15.33 billion. In addition, JNJ revised its full-year estimate, now expecting adjusted earnings between $4.65 and $4.75 per share. This new range includes the impact of the recalls of some OTC medicines, the suspension of production at a plant in Pennsylvania, and poor foreign-exchange rates.
One facet of the report that should be of concern was a drop in worldwide consumer sales. This metric fell to $3.6 billion (5.4%) when compared to a year earlier. The drop was the result of a 6.5% decline in operations and a positive currency impact of 1.1%. Perhaps the most disturbing of the numbers is the 14.3% drop in domestic sales - more than negating a 1.8% increase in international sales.
JNJ's strong sellers included Neutrogena products, baby care products, and Johnson's adult skin products. Unfortunately, strong performance from this group could not overcome the aforementioned recalls, plant operation suspension, and foreign exchange.
Technically, JNJ is staring upward at potential resistance from its 20-month moving average (you can explore JNJ's technical prowess here). This trendline has provided support in the past, and it could now act as resistance -- a reprisal of a role it filled from October 2008 through July 2009. Furthermore, the shares have fallen below the $60 level -- a round-number level that provided support in the past. The good news is that said level isn't too far overhead. However, this morning's earnings news may not help matters.