Johnson & Johnson beats fourth quarter estimates

Shares of Johnson & Johnson (JNJ) dropped 2.6% to $101.29 Tuesday after posting better-than expected quarterly earnings but a 0.6% drop in sales.

The healthcare giant posted a profit of 89 cents a share and earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, of $1.27 a share.

The average estimate of analysts surveyed by Zacks Investment Research was $1.25 per share.

Sales came in at $18.3 billion, down 0.6% over the year-ago quarter. Analysts expected $18.51 billion, according to Zacks.

For the full year, the health care giant said sales rose 4.2% to $74.3 billion from the year-ago quarter.

"2014 was a strong year for Johnson & Johnson, as we delivered solid financial results while continuing to make investments to accelerate growth for the long term. We have built significant momentum in our pharmaceutical business, are realizing the benefits of innovation, scale and breadth in our Medical Devices business and are continuing our market leadership with iconic brands in our Consumer business," said CEO Alex Gorsky.