Tags: J&J | Johnson | Earnings Forecast | Dollar

J&J Cuts Full-year Forecast Due to Strong Dollar

Tuesday, 14 Apr 2015 08:47 AM


Johnson & Johnson cut its full-year profit forecast on Tuesday, saying it expected a strong dollar to keep hurting its international business.

The company, which got a little over half its revenue from outside the United States in 2014, warned in January that the dollar's strength could hurt earnings by 42 cents per share this year.

The dollar gained nearly 9 percent against a basket of major currencies in the three months up to March 31, after rising 13 percent in 2014.

The Band-aid maker cut its full-year profit forecast to $6.04-$6.19 per share from $6.12-$6.27 per share.

Analysts on average were expecting a profit of $6.16 per share, according to Thomson Reuters I/B/E/S.

The company's net profit fell to $4.32 billion, or $1.53 per share, in the first quarter, from $4.73 billion, or $1.64 per share, a year earlier.

Excluding items, J&J earned $1.56 per share, beating the average analyst estimate of $1.54.

International sales fell about 12.4 percent to $8.68 billion. Excluding the impact of a stronger dollar, international sales would have risen about 1 percent, the company said.

Total sales fell 4.1 percent to $17.37 billion, but still topped analyst expectations of $17.31 billion, helping to send the company's stock up marginally to $101.15 in light premarket trading.

J&J's stock closed at $100.55 on the New York Stock Exchange on Monday.

© 2017 Thomson/Reuters. All rights reserved.

   
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Johnson & Johnson cut its full-year profit forecast on Tuesday, saying it expected a strong dollar to keep hurting its international business.
J&J, Johnson, Earnings Forecast, Dollar
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2015-47-14
Tuesday, 14 Apr 2015 08:47 AM
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