Johnson & Johnson (NYSE:JNJ) reported a 14% drop in first-quarter profit on Tuesday that beat analysts’ expectations as the company faces litigation over its talc baby powder and new competition against its prostate cancer drug Zytiga.
J&J reported first-quarter net income of $3.75 billion, or $1.39 per share, a sharp decrease from $4.37 billion, or $1.60 per share a year earlier.
When adjusted, J&J earned $2.10 per share, above the $2.03 per share expected by analysts.
Early reports say sales barely budged, rising to $20.02 billion from $20.01 billion during the first three months last year. Still, analysts expected a decline to $19.61 billion.
More than half of its revenue came from prescription drug sales, which increased $10.24 billion from $9.84 billion in the year-ago quarter. Analysts were expecting revenue of $9.83 billion
The company narrowed its full-year earnings forecast to a range of $8.53 to $8.63 per share from its previous estimate of between $8.50 and $8.65. It didn’t change its projected sales of $80.4 billion to $81.2 billion for 2019.
A report in December claimed J&J knew for decades its talc baby powder contained asbestos, threatening the company’s namesake portfolio of baby products after re-launching the brand last spring. The company has repeatedly denied any wrongdoing and stands behind its namesake baby powder.
Sales of prostrate cancer drug Zytiga are under threat, thanks to generic versions launching late last year after a judge struck down J&J’s patent.
Shares gained $3.42, or 2.5%, to $139.95
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