The strong dollar put a -7.3% hurt on Johnson & Johnson‘s (NYSE:JNJ) medical device sales during the 3rd quarter, the company said today, reporting a -29.3% hit to the bottom line on an overall sales decline of -7.4% compared with Q3 2014.
Medical device sales were $6.09 billion during the quarter, off -7.3% despite U.S. revenue growth of 2.0% to $3.0 billion. International medical device sales were down -14.8% to $3.09 billion, which included a 14.9% headwind from exchange rates overseas, Johnson & Johnson said. The company gets nearly half of its sales from outside the U.S.
Profits for the New Brunswick, N.J.-based healthcare titan were $3.36 billion, or $1.20 per share, on sales of $17.10 billion during the quarter. But J&J still managed to beat expectations on Wall Street by a nickel, reporting adjusted earnings per share of $1.49. Analysts were looking for sales of $17.45 billion, however, perhaps explaining the tepid reaction on The Street today. JNJ shares were off -0.8% at $95.18 apiece in mid-morning activity today.
“New and core products drove solid underlying growth for Johnson & Johnson in the quarter,” chairman & CEO Alex Gorsky said in prepared remarks. “Consistent with the plans we’ve laid out for the year, we’re focusing our portfolio and are advancing our innovation agenda to expand our leadership position in key categories while seeking new opportunities for growth. Our dedicated employees are committed to improving healthcare and making a difference in the lives of patients and consumers worldwide.”
Johnson & Johnson, which also announced a $10 billion share repurchasing plan on top of the $5 billion it’s already bought back, raised the low end of its earnings guidance for the year. The company said it now expects adjusted 2015 EPS of $6.15 to $6.20, up from prior guidance of $6.10 to $6.20.
Material from Reuters was used in this report.