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The sixth largest healthcare firm in the world, Johnson & Johnson, cut guidance today after reporting roughly in line quarterly results.The New Brunswick, N.J., based firm said it would now earn some $5.00 to $5.07 per share for the year, below earlier projections for as much as $5.17 a share.
Johnson & Johnson attributed the declines to foreign exchange movements that moved against the company’s positions. Without J&J’s recent purchase of Synthesis, guidance would likely be lower, the company said.
The announcement was timed with the firm’s second quarter results, where it earned an adjusted $1.30 per share, ahead of the $1.29 consensus on the Street.
However sales were more than $200 million below forecasts, at $16.48 billion. Two of the company’s three business units, consumer healthcare and medical devices, saw revenue decline during the period. Johnson & Johnson was buttressed by its pharmaceutical division, which recorded sales growth of less than one per cent.
“Our pharmaceutical pipeline continued its strong momentum this quarter with the submission of several new drug applications, as well as strong growth from several recently launched products that meet critical patient needs,” said Alex Gorsky, J&J CEO.
Shares are off more than one per cent in pre-market trade.
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