Johnson & Johnson Posts Disappointing Sales, Guidance

Johnson & Johnson (JNJ) reported adjusted fourth quarter earnings of $1.03 per share this morning, matching the consensus analyst estimate. But revenue of $15.6 billion came up well short of Wall Street’s expectations, and the company’s 2011 guidance disappointed as well, sending shares down in pre-market trading.

Analysts were expecting the health care giant to bring in sales of $16.08 billion, on average. Instead, revenue fell 5.5% year over year and missed those expectations by nearly half a billion dollars. Excluding special items, net earnings for the quarter were $2.9 billion, up 0.6% compared to the same period last year. For the full year, net earnings were up 2.9%, while sales fell 0.5%.

Looking ahead, the company expects 2011 earnings to land in a range of $4.80 to $4.90 per share, below the current analyst consensus of $4.97 per share.

Shares of JNJ fell to $61.20 in pre-market trading, where they carry a 3.53% dividend yield.

Johnson & Johnson has increased its dividend every year since 1963, including last year’s 10% boost. The company typically announces its annual dividend hike in April.

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