J&J reports mixed results, $10B share buyback

October 14 08:53 2015

Johnson & Johnson (JNJ) reported mixed third-quarter earnings Tuesday as the pharmaceutical giant also announced plans for a $10 billion share buyback program. J&J shares were down 1.56% at $94.49 in morning trading after the statements were issued. The company’s earnings per share came in at $1.49, four cents higher than the consensus of financial analysts compiled by Thomson Reuters but below the $1.61 J&J reported for last year’s third quarter.

Revenue for the three-month period totaled $17.1 billion, the company said. The result was lower than the nearly $17.5 billion expected by Wall Street and marked a 7.4% decline from the same quarter of 2014. Although the results helped J&J beat earnings-per-share expectations for the 19th consecutive quarter, the company’s stock has fared worse than shares of pharmaceutical industry peers and the broader financial market this year.

J&J said its financial results were affected by differences in currency valuations. Worldwide consumer sales of $3.3 billion marked a 7.7% decline from the same period last year and were affected by a 10.8% negative impact of currency, the company reported. While domestic sales increased 8.9%, international sales dropped 15.7%, hit by a negative currency impact of 16.1%, J&J said.

Sales of over-the-counter products including pain-relievers such as Tylenol and Motrin helped boost operational results, the company said. The New Jersey-based company and S&P 500 component raised its adjusted earnings guidance for the full 2015 fiscal year to $6.15-$6.20 per share. The company’s plans now contain a new element, a share buyback that could help boost J&J’s stock value.