Johnson & Johnson Beats Estimates By Slashing Research Spending

Johnson & Johnson (JNJ) beat analyst estimats for third quarter earnings by seven cents per share, reporting EPS of $1.20. Guidance was raised to $4.54 – $4.59 from $4.45 – $4.55.

Sales fell year over year, with their U.S. domestic business particularly weak. On a segment basis, the company’s pharmaceuticals and consumer sales both fell, yet medical devices and diagnostics rose 2.3%.

Overall, the company eked out year over year EPS growth mostly due to about $250 million less in research expense plus other cost control.

JNJ Earnings

JNJ 3Q09 Earnings

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