Dow component Johnson & Johnson (NYSE: JNJ) reports its results solid fourth quarter results, but offered a somewhat disappointing outlook. Shares of JNJ are trading down slightly in the pre-market hours following the news.

Sales rose 3.9 percent year over year to $16.255 billion and were slightly below the Street's consensus of $16.27 billion. Operational sales increased 4 percent, while domestic sales declined 3.4 percent and international sales increased 10.2 percent.

The cost of products accounted for 32.8 percent of total sales, an increase of 0.6 percent from the fourth quarter of 2010. Selling and marketing expenses made up 33.6 percent of total sales, 0.5 percent increase from the same period in 2010. The company spent $2.155 billion on research and development over the quarter, 0.5 percent below what they spent last year.

Net earnings and diluted earnings per share were $0.2 billion and $0.08. Excluding special items, net earnings rose 9.3 percent to $3.1 billion and diluted earnings per share grew 9.7 percent to $1.13. The Street's consensus was calling for earnings of $1.09 per share.

The Company announced earnings guidance for full-year 2012 of $5.05 to $5.15 per share, which excludes the impact of special items and is below the Street's consensus of $5.21. This guidance reflects operational growth of approximately 3.5 percent to 5.5 percent partially offset by an estimated negative impact of currency of approximately 2.5 percent.

"We delivered solid results for 2011, built on the strong growth of our recently launched pharmaceutical products, and continued the steady momentum of new product approvals across all our businesses," said William C. Weldon, Chairman and Chief Executive Officer. "Our talented people are focused on bringing meaningful innovations to patients and customers to address significant unmet needs, positioning us well to deliver sustainable leadership and profitable growth in health care."

Earnings Guidance