 "JOHNSON & JOHNSON")
Johnson & Johnson beat first-quarter expectations, as growth in the health care giant's home market helped counter another revenue hit overseas from a strong dollar.
The health care giant booked a USD 68 million loss on a one-time charge in the quarter, and revenue grew more than 5 per cent to USD 24.75 billion, which was better than anticipated.
Adjusted earnings totalled USD 2.68 per share, topping Wall Street projections for per-share earnings of USD 2.50, according to a survey by FactSet.
Johnson & Johnson sells prescription drugs and medical devices. It is splitting off its consumer health business, which includes well-known products like BandAids. The company expects to complete the separation this year.
Sales in the US grew nearly 10 per cent to USD 12.52 billion in the quarter, while international sales climbed nearly 2 per cent.
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A strong US dollar can affect sales for companies that do a lot of international business. They have to convert those sales into dollars when they report earnings. The stronger dollar decreases the value of those sales. It also gives foreign products a price edge in the United States.
J&J brings in nearly half of its revenue from outside the United States.
J&J board OK'd a 5 per cent increase in the company's quarterly dividend. That bumps the amount up to USD 1.19 per share from USD 1.13 per share.
The New Brunswick, New Jersey, company on Tuesday also boosted the lower end of its forecasted range for 2023 by a dime. It now expects adjusted earnings of between USD 10.50 and USD 10.60 per share.
Analysts expect earnings of USD 10.51 per share this year.
Shares climbed in early morning trading.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
