Johnson & Johnson Expects Higher Results in Full Year 2017

Johnson & Johnson said on Tuesday that it is expecting higher sales and earnings for its 2017 fiscal year, which are less than what the expectations are for Wall Street.

The company posted solid results for the fourth quarter with is adjusted earnings higher than market expectations, while sales came up slightly short despite strong growth.

In activity prior to the opening bell on Wall Street, shares of J&J were down 1.68%.

For its fiscal 2017, J&J expects to have adjusted earnings of between $6.93 and $7.08 a share, which would reflect an operational growth of between 4.8% and 7%.

Sales for the 2017 full year are estimated to be between $74.1 billion and $74.8 billion, which would reflect a growth operationally of between 4% and 5%.

Excluding any impact from divestitures or acquisitions operational growth of sales should be between 3% and 3.5%.

During 2016, the company posted per share earnings of $5.93 and adjusted per share earnings of $6.73 on $71.88 billion in sales. Both were higher than in 2015.

The company, in ongoing portfolio management, said it is evaluating possible strategic options for its diabetes care companies, specifically its Animas Corporation, LifeScan Inc and Calibra Medical.

Those options include joint ventures, strategic alliance or partnerships, a sale of businesses or other possible alternatives.

J&J also announced there was no assurance the process would result in any type of transaction or strategic alternative.

During the fourth quarter, J&J posted net earnings that were up 18.6% ending at $3.81 billion compared to $3.22 billion for 2015. Per share earnings reached $1.38, which represented a growth of 20% from the $1.15 from one year ago.

Excluding an intangible amortization after-tax expense and some special items, adjusted net earnings reached $4.36 billion equal to $1.58 a share in comparison to $4.04 billion that was $1.44 a share during the same period one year ago.

Sales for the quarter reached $18.1 billion which represented a 1.7% increase from the same period one year ago of $17.8 billion.

Analysts were expecting earnings to be $1.56 a share with sales reaching $18.27 billion during the quarter.

Operational sales increased by 2.3%. Domestic sales were up 2.6%, while its international sales increased just slightly by 0.6%.

Adjusted global sales were up 7.6%, with domestic sales up 9.5% and international sales up by 5.6%.