J&J's 4th qtr 2006 EPS beats analysts' estimate

US health care major Johnson & Johnson achieved sales of $13.7 billion in the fourth quarter of 2006, an increase of 8.5% on the like period in 2005, as net earnings and diluted earnings per share both rose 3.5% to $2.2 billion and $0.74, respectively, thanks to a strong performance from drugs and consumer products.

However, these earnings include an after-tax $217.0 million charge for in-process R&D from J&J's acquisition of Pfizer Consumer Healthcare (see page 3). Excluding this charge, net earnings totaled $2.4 billion with EPS of $0.81, ahead of analysts' consensus estimate of $0.79, and representing increases of 13.5% and 15.7%, respectively.

Net earnings and diluted EPS for the full year were $11.1 billion and $3.73, increases of 9.9% and 11.3%, respectively. During the period, worldwide sales from J&J's medical devices and diagnostics segment reached $20.3 billion, up 6.2%, with operational growth of 6.4% and a negative currency impact of 0.2%. Domestic sales in this area rose 6.5% to $10.11 billion, while international sales increased 5.9% to $10.17 billion.