Johnson & Johnson reports strong Q1 results

Johnson & Johnson reports strong Q1 results

Johnson & Johnson has reported a strong Q1 2016 with a year on year 0.6 percent increase in sales to $17.5 billion.

The results were affected by a negative worldwide currency impact of 6.6 percent, however, the company raised its sales guidance for the full year from $71.2 billion to $71.9 billion, which reflects expectations of improved foreign currency exchange rates.

Alex Gorsky, Chairman and Chief Executive Officer said, “We are off to a strong start to the year, supported by our first quarter underlying sales growth. Our Pharmaceuticals business continues to deliver impressive levels of growth, we have steady improvement in our Consumer business, and we are seeing momentum in our Medical Devices businesses, all of which are fueling our optimism for the full-year ahead.”

Operational sales increased 3.9 percent while domestic sales rose 7.2 percent. International sales decreased 6.0 percent, reflecting operational growth of 0.6 percent and a negative currency impact of 6.6 percent. Net earnings and diluted earnings per share for the first quarter of 2016 were $4.3 billion and $1.54, respectively.

Johnson & Johnson shares rose on Tuesday as a result of the positive sales results with its stock closing at 1.58 percent higher at $112.68 per share.