Plunging J&J Consumer Sales Hurt Results

Johnson & Johnson on Tuesday reported disappointing quarterly revenue as sales of U.S. consumer products plunged 25% following recalls of Tylenol and other consumer brands, driving company shares 2% lower.

Although J&J reported better-than-expected quarterly earnings, analysts said the profit beat was largely due to lower taxes and one-time items.

"There was more of a decline in the consumer business than we had expected and not as strong a showing in the medical device business," Nobel Financial Capital analyst Jan Wald said. The diversified healthcare company earned $3.42 billion, or $1.23 per share, in the third quarter. That compared with $3.35 billion, or $1.20 per share, in the year-earlier quarter.