Johnson & Johnson cautious in outlook, shops diabetes care
Johnson & Johnson edged out Wall Street profit expectations for the fourth quarter but announced a lower-than-expected 2017 forecast and said it would start shopping its diabetes care businesses.
Johnson & Johnson said Tuesday that it would start seeking a possible sale, joint venture or operating partnerships for LifeScan Inc., Animas Corp. and Calibra Medical Inc. to spark future growth and maximize shareholder value.
The conglomerate also said it expected full-year adjusted earnings of $6.93 to $7.08 per share on $74.1 billion to $74.8 billion in sales.
Analysts expect, on average, earnings of $7.11 per share on $75.07 billion in revenue, according to FactSet. Shares of the world's biggest maker of health care products slipped in early morning trading.
For the final quarter of 2016, J&J earned $3.81 billion, with adjusted earnings coming to $1.58 per share.
Analysts expected, on average, earnings of $1.56 per share, according to Zacks Investment Research.
The maker of Band-Aids, medical devices and prescription drugs posted revenue of $18.11 billion in the period, matching Street forecasts.
Shares of the New Brunswick, New Jersey, company fell $1.88 to $112.03 in premarket trading Tuesday.
Johnson & Johnson shares had fallen 1 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 1 percent. The stock has risen 19 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on JNJ at https://www.zacks.com/ap/JNJ
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