J&J raises 2016 profit outlook

Johnson & Johnson raised its 2016 profit forecast after beating third-quarter expectations for profit and sales.

J&J added to its reputation for sterling finances with a 4.2% increase in revenue to $17.8 billion and a 27.2% increase in net earnings to $4.3 billion.

On a per-share basis, earnings were $1.53, edging S&P Global Market Intelligence expectations of $1.51.

Bolstered by strong performances for products such as Listerine mouthwash and Aveeno skin care, J&J raised its full-year adjusted earnings per share projection to a range of $6.68 per share to $6.73.

The performance reflected J&J's status as one of only two American companies left with a pristine AAA credit rating. The other, Microsoft, is in danger of losing its mark.

"Our third-quarter results reflect the success of our new product launches and the strength of our core businesses, driven by strong growth in our pharmaceuticals business," J&J CEO Alex Gorsky said in a statement. "Our broad-based business model, strategic investments and talented colleagues position us well for continued leadership in health care."

Still, there were a few blemishes on the earnings statement. Excluding the effect of acquisitions and asset divestitures, global sales on an operational basis fell 0.4%.

And in the consumer products segment, total sales declined 1.6% to $3.3 billion. But that was offset by a 9.2% increase in pharmaceutical sales to $8.4 billion and a 1.1% increase in medical devices revenue to $6.2 billion.

J&J shares (JNJ) slipped almost 3% to $115.36 in late-day trading.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.