Johnson & Johnson Beats in Fourth Quarter

Johnson & Johnson reported its fourth quarter financial report ahead of the bell on Tuesday.

The healthcare company, which has been under hot water in recent months over claims that it knew about talc baby powder containing asbestos, still managed to top expectations.

Despite a solid fourth quarter, Johnson & Johnson has given a dim outlook for 2019, falling short on sales estimates.

“As you’ve heard me say before, while we’re pleased with our 2018 performance it’s important to remember that we are never satisfied,”

Johnson & Johnson CEO Alex Gorsky told analysts on a call.

For the fourth quarter, which includes the last three months of 2018, the company reported earnings per share of $1.97, while analysts expected $1.95. Revenue at $20.4 billion was better than the $20.2 billion that was expected.

Net income of $3.04 billion, or $1.12 per share, was up from a loss of $10.7 billion, or a loss of $3.99 per share a year earlier due to amortization expenses and special items.

Johnson & Johnson has now beat consensus earnings estimates 21 quarters in a row and revenue 14 of the past 21 quarters.

Pharmaceutical sales reached $10.19 billion, surpassing the $9.99 billion analysts had expected. The company also put aside $1.29 billion for legal costs during the quarter. This was double the $645 million the company had spent during the same period in the year before.

“We will continue to fight and defend a product that consumers use around the globe that we know to be safe, not just based on our own scientific evidence, but that from highly respected authoritative bodies across the globe,” J&J Chief Financial Officer Joseph Wolk said to CNBC’s “Squawk on the Street” this week.

Looking ahead the company expects earnings for 2019 between $8.50 and $8.65 a share and revenue between $80.4 billion to $81.2 billion. Analysts were expecting $8.60 a share and $82.69 billion in revenue.

Disclaimer: We have no position in Johnson & Johnson (NYSE: JNJ) and have not been compensated for this article.