Johnson & Johnson shares rose by more than 3% in premarket trading Tuesday after the drugmaker raised its quarterly dividend — even as it cut full-year earnings guidance due to the coronavirus outbreak.
J&J raised its dividend from 95 cents a share to $1.01, a 6.3% increase, and beat Wall Street’s earnings and revenue expectations. On an adjusted basis, J&J reported $2.30 per share during the first three months of the year, higher than the $2 a share expected by Refinitiv analysts. It generated $20.7 billion in revenue, higher than the $19.47 billion expected.
“The dividend this morning is a real good sign of the strength of the company. We’re in great financial position,” Chief Financial Officer Joseph Wolk said in an interview on CNBC’s “Squawk Box” shortly after the earnings were released. “We think this could lend itself to some opportunity for us.”
The company lowered its 2020 adjusted earnings forecast to a range of $7.50 to $7.90 per share, from its prior estimate of…
