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

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at