J&J first quarter revenue misses estimates; new forecast includes Actelion
By Bill Berkrot and Natalie Grover
(Reuters) - Johnson & Johnson on Tuesday reported disappointing pharmaceutical and consumer product sales as revenue missed analyst estimates, sending its shares sharply lower.
However, cost controls and lower taxes helped the healthcare conglomerate beat Wall Street profit forecasts.
J&J shares, part of the Dow Jones Industrial Average, fell 3.6 percent to $121.11 in the biggest one-day percentage decline in more than eight years as the company said it expected a slower growth rate for pharmaceuticals this year.
Overall sales of $17.77 billion in the quarter fell short of analysts' average estimate of $18.04 billion, according to Thomson Reuters I/B/E/S.
The company, which is on track to close its $30-billion acquisition of Actelion in the current quarter, issued a new full-year forecast to include Europe's largest biotech.
With Actelion, J&J expects 2017 sales of $75.4 billion to $76.1 billion and adjusted earnings of $7.00 to $7.15 per share. It forecast Actelion will contribute 35-40 cents to earnings per share in 2018.
"The expected benefit from the Actelion acquisition this year came in lower than our estimates," said Edward Jones analyst Ashtyn Evans. "Additionally, the company's total growth came in lower than we expected, which is disappointing."
Without Actelion, J&J maintained its prior forecast for sales of $74.1 billion to $74.8 billion and adjusted earnings of $6.93 to $7.08 per share. Continued...