Investing.com - Health care conglomerate Johnson & Johnson (N:JNJ) reported better-than-expected third quarter earnings and provided upbeat guidance for the year ahead, sending its shares higher in pre-market trade.
J&J said adjusted earnings per share came in at $1.49 in the quarter ended September 30, beating expectations for earnings of $1.45 per share and down from adjusted earnings of $1.61 in the same period a year earlier.
The company’s third quarter revenue totaled $17.1 billion, a decrease of 7.4% as compared to the third quarter of 2014 and below expectations for revenue of $17.46 billion.
Operational sales results increased 0.8% and the negative impact of currency was 8.2%.
Domestic sales decreased 0.6%. International sales decreased 13.7%, reflecting operational growth of 2.1% and a negative currency impact of 15.8%.
Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 5.6%, domestic sales increased 7.7% and international sales increased 3.8%.
Prior to its earnings announcement, the health care and consumer products company said it approved a $10 billion share repurchase program. The buyback, which J&J said will be financed by issuing debt, has no time limit.
"New and core products drove solid underlying growth for Johnson & Johnson in the quarter," said Alex Gorsky, Chairman and Chief Executive Officer.
The firm now sees full year adjusted earnings per share in a range between $6.15 and $6.20, up from a previous estimate for adjusted earnings between $6.10 and $6.20 per share.
Immediately after the earnings announcement, Johnson & Johnson shares tacked on 0.95%, or 91 cents, in trading prior to the opening bell to $96.90 compared to Monday's closing price of $95.98.
Meanwhile, U.S. equity markets pointed to a weaker open. The Dow futures pointed to a drop of 0.4%, the S&P 500 futures shed 0.4%, while the Nasdaq 100 futures declined 0.5%.