Johnson & Johnson (NYSE: JNJ) managed to marginally beat earnings expectations this Tuesday morning. This is the first of the consumer products and medical products companies to report, so this one could have a heavier impact depending on what is said.
The company beat earnings at $1.13 EPS and sales rose almost 4% to $16.25 billion; estimates were $1.09 EPS and $16.28 billion in sales from Thomson Reuters. The company noted that operational sales were up 4.0% and its negative currency impact was only 0.1% as domestic sales fell by 3.4% and international sales rose by just over 10% in the quarter.
For the Fiscal Year 2012, J&J sees earnings of $5.05 to $5.15 EPS and that is a bit shy of the $5.21 consensus target based upon operational growth of down slightly to as high as 5.5% and based upon a negative currency impact of around 2.5%.
J&J’s guidance is weighing on the stock. Shares are indicated down 0.75% at $64.50 against a 52-week trading range of $57.50 to $68.05 and versus a Thomson Reuters consensus price target of $73.00.
The report has remained better than many may have guessed considering all of the product problems before. Unfortunately, there is little driving force here that stands out as great opportunity.