Johnson & Johnson's
Revenue was up 4%, but that was entirely because of changes in currency; at constant currency, revenue dropped ever so slightly. The culprit, as has been the case in previous quarters, was generic competition for epilepsy drug Topamax -- down 75% -- and antipsychotic Risperdal -- down 50%. Sales of pharmaceutical drugs fell 5.7% at constant currency despite strong performances from Remicade, which the company sells with Merck
Earnings per share were up just 2.4% excluding a one-time gain from the company's patent settlement with Boston Scientific
It has been a rough year for Johnson & Johnson. Shares are up 26%, but that pales in comparison with the 45% rise that the S&P 500 has managed. Investors have enjoyed a solid dividend along the way, but a little growth thrown in would certainly be nice.
Fortunately, investors who have hung around long enough to see Johnson & Johnson through this transition period may finally get to see growth on the other side. Topamax first faced generic competition in March of last year, so future year-over-year comparisons will now reflect the decreased sales.
See you next quarter, Johnson & Johnson. By then I hope you've moved farther than a slow-moving mammal.
An earlier version of this article overstated the effect of additional Medicare expenses to earnings. The Fool regrets any misinterpretation.
Johnson & Johnson is an Income Investor recommendation. To see how dividend-paying stocks can offer both secure income and the opportunity for growth, take a look at this newsletter with a 30-day free trial.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Motley Fool Options has recommended a buy calls position on Johnson & Johnson. The Fool has a disclosure policy.