Johnson & Johnson was whacked by the strong dollar again.
The company reported third-quarter earnings results on Tuesday, and it beat expectations for profits.
However, like many multinationals that earn revenues in weaker currencies, sales were softened by the dollar.
Overall, the healthcare and consumer products giant posted adjusted earnings per share of $1.49. Revenues fell 7.4% to $17.1 billion, coming in below expectations.
Analysts had estimated that J&J posted adjusted EPS of $1.45 on revenues of $17.45 billion, according to Bloomberg.
The impact that the dollar has on earnings is set to be a major theme this earnings season. And as FactSet’s John Butters noted to clients on Friday, it is already a top mention in earnings calls.
Ahead of the release, the company announced a $10 billion share buyback program. It said it had about 2.8 billion shares of common stock outstanding as of September 27, and will finance the repurchases by issuing debt.
Its stock is down 8% year-to-date. Shares were up less than 1% in premarket trading.
In Q3, international sales fell 13.7%, reflecting 2.1% operational growth and a foreign currency hit of 15.8%.
Global pharma sales also fell year-on-year to $7.7 billion, with a 7.1% negative impact.
“New and core products drove solid underlying growth for Johnson & Johnson in the quarter,” said CEO Alex Gorsky in the release.