Johnson & Johnson Lowers Full-Year Sales Forecast, Shares Fall
Johnson & Johnson lowered its sales forecast for 2018 on Tuesday, citing a strengthening dollar.
Shares of the Dow component fell 1% to $123.45 in premarket trading. They have dropped 10.7% this year.
The healthcare conglomerate said it expects full-year sales of $80.5 billion to $81.3 billion, compared with a prior range of $81.0 billion to $81.8 billion.
Johnson & Johnson said it now expects adjusted earnings of $8.07 to $8.17 per share, compared with an earlier forecast of $8.00-$8.20 per share.
Analysts had expected full-year profit of $8.12 per share and sales of $81.47 billion, according to Thomson Reuters.
The group released its second-quarter report which showed that the group's quarterly profit rose by 3.3%.
The healthcare conglomerate's net earnings rose to $3.95 billion (€3.4 billion), or $1.45 per share, in the second quarter, from $3.83 billion (€3.3 billion), or $1.40 per share, a year earlier.
Excluding items, the company reported a profit of $2.10 per share, beating analysts' average estimate of $2.07.
Sales rose to $20.83 billion (€17.78 billion), a 10.6% increase on 2017’s $18.84 billion (€16.07 billion).
“Our strong second-quarter results reflect double-digit growth in our Pharmaceutical business and the accelerating sales momentum in our Medical Devices business, driven by the continued growth of our market leading products and strategic new launches,” said Alex Gorsky, Chairman and CEO, on the company's website.
“We remain focused on investing in innovation and meeting the needs of our customers by delivering innovative products and solutions that position the company to deliver long-term, sustainable growth.
“Our talented J&J colleagues are united in our efforts to address some of the most critical health and consumer needs of people around the world.”