Share “J&J Q1 net up 8 percent on sales jump,...”

J&J Q1 net up 8 percent on sales jump, lower costs

Published on NewsOK Modified: April 15, 2014 at 11:33 am •  Published: April 15, 2014
Advertisement

The consumer products business has had dozens of recalls since 2009 for products including pain relievers Tylenol and Motrin. J&J must win back customers who switched to cheaper store brands when J&J's weren't available.

"Consumer products ... will stay weak because consumers learned there is nothing special about" J&J's, said Erik Gordon, an analyst at University of Michigan's business school.

Edward Jones analyst Judson Clark predicted "earnings growth will accelerate over the next few years, driven primarily by new biopharmaceutical product launches and a decreasing impact from patent losses," which trigger generic competition.

He added that shares don't fully reflect the value of J&J's "pipeline potential."

Chief Financial Officer Dominic Caruso said harsh winter weather reduced doctor's visits, elective surgeries and other health care use. That affects sales of products from medicines to artificial joints.

"We're well positioned for growth throughout the year," Caruso told analysts during a conference call.

The company raised its profit forecast for 2014 to $5.80 to $5.90 per share, excluding special items, up a nickel from its January forecast.

In midday trading, shares rose $1.11, or 1.1 percent, to $98.25. Sales have jumped by 50 percent over the past two years.

___

Follow Linda A. Johnson at http://twitter.com/LindaJ_onPharma