Johnson & Johnson’s stock slips after profit rises above expectations, but sales comes up a bit shy

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Shares of Johnson & Johnson slipped 0.1% in premarket trading Wednesday, after the consumer products and drug giant reported a fourth-quarter profit that beat expectations but revenue that came up a bit shy. Net income rose to $4.01 billion, or $1.50 a share, from $3.04 billion, or $1.12 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew 4.6% to $1.88, above the FactSet consensus of $1.87. Sales rose 1.7% to $20.75 billion, just below the FactSet consensus of $20.80 billion. Consumer revenue increased 0.9% to $3.57 billion, below the FactSet consensus of $3.59 billion; pharmaceuticals sales grew 3.5% to $10.55 billion to top expectations of $10.43 billion; and medical device sales fell 0.5% to $6.63 billion to miss expectations of $6.69 billion. For 2020, the company expects net sales of $85.4 billion to $86.2 billion, surrounding the FactSet consensus of $85.52 billion. The stock has gained 0.4% over the past three months through Tuesday, while the SPDR Health Care Select Sector ETF has climbed 13.9% and the Dow Jones Industrial Average has advanced 9.0%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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