The healthcare giant reports that first-quarter profit fell 22 percent from last year, due to a $807 million charge related to its acquisition of Conor Medsystems Inc. First-quarter profit was $2.6 billion, or 88 cents, compared with $3.3 billion, or $1.10, a year ago.

Excluding special items, J&J earned $1.16 per share. On average, analysts expected $1.04, according to Reuters Estimates. Last year, the results were hurt by a break-up fee generated by a failed attempt to buy Guidant and charges associated with acquisitions.

Sales rose 16 percent to $15 billion, compared with Wall Street forecasts of $14.44 billion. This was the first full quarter to include the former Pfizer consumer healthcare business.

Meanwhile, J&J raised its outlook for the year, despite challenges facing the pharmaceutical industry. Dominic Caruso, the cfo, says earnings should hit $4.02 to $4.07 a share, excluding one-time items. The previous range was $3.83 to $3.93. And analysts were looking for $3.89.
Caruso also says sales should grow 12 percent to 12.5 percent on an operational basis, or higher than previous estimates.

Reuters;
J&J press release.

Hat tip to Jeff May of The Star-Ledger of New Jersey for the outlook tidbit.[tags]Johnson & Johnson[/tags]