new Brunswick: johnson & Johnson beat expectations for the first quarter, as growth in the health care giant’s domestic market helped it counter another revenue hit overseas from a stronger dollar.
The health care giant reported a $68 million loss in the quarter on a one-time charge, and revenue rose more than 5 percent to $24.75 billion, which beat estimates.
According to a survey by FactSet, adjusted earnings totaled $2.68 per share, topping Wall Street estimates for per-share earnings of $2.50.
Johnson & Johnson sells prescription drugs and medical devices. It’s separating out its consumer health business, which includes well-known products band aids, The company expects to complete the separation this year.
Sales in the US rose nearly 10 percent to $12.52 billion in the quarter, while international sales climbed nearly 2 percent.
A strong US dollar can affect sales for companies that do a lot of international business. They must convert those sales into dollars when reporting earnings. The stronger dollar drives down the value of those sales. It also gives foreign products a price advantage in the United States.
J&J brings in about half of its revenue from outside the United States.
J&J’s board okayed a 5 percent increase in the company’s quarterly dividend. That bumps the amount from $1.13 per share to $1.19 per share.
The New Brunswick, New Jersey, company also on Tuesday raised the low end of its forecasted range for 2023 by a penny. It now expects adjusted earnings of between $10.50 and $10.60 per share.
Analysts expect earnings of $10.51 per share this year.
Shares rose in morning trade.
The health care giant reported a $68 million loss in the quarter on a one-time charge, and revenue rose more than 5 percent to $24.75 billion, which beat estimates.
According to a survey by FactSet, adjusted earnings totaled $2.68 per share, topping Wall Street estimates for per-share earnings of $2.50.
Johnson & Johnson sells prescription drugs and medical devices. It’s separating out its consumer health business, which includes well-known products band aids, The company expects to complete the separation this year.
Sales in the US rose nearly 10 percent to $12.52 billion in the quarter, while international sales climbed nearly 2 percent.
A strong US dollar can affect sales for companies that do a lot of international business. They must convert those sales into dollars when reporting earnings. The stronger dollar drives down the value of those sales. It also gives foreign products a price advantage in the United States.
J&J brings in about half of its revenue from outside the United States.
J&J’s board okayed a 5 percent increase in the company’s quarterly dividend. That bumps the amount from $1.13 per share to $1.19 per share.
The New Brunswick, New Jersey, company also on Tuesday raised the low end of its forecasted range for 2023 by a penny. It now expects adjusted earnings of between $10.50 and $10.60 per share.
Analysts expect earnings of $10.51 per share this year.
Shares rose in morning trade.