Investors are selling shares of Johnson & Johnson (NYSE: JNJ) Tuesday morning following inline second-quarter earnings, only a slight miss on the top line, but FY12 guidance which was reduced.

The consumer healthcare company saw quarterly revenue decline 0.7 percent from the same period last year to $16.475 billion. Analysts were expecting J&J to report second-quarter sales of $16.7 billion.

Sales to the company's Medical Devices & Diagnostics segment fell 0.1 percent to $6.565 billion, sales to the Pharmaceutical division were up 0.9 percent to $6.291 billion, and sales to the Consumer unit fell 4.6 percent to $3.619 billion.

Revenue within the US and Europe fell 1.2 percent and 8.3 percent, respectively. J&J's sales to Western Hemisphere (excluding the US) rose 12 percent, while sales to Asia-Pacific and Africa were up 5.2 percent.

Pro-forma net income was up 2.7 percent from $3.548 billion in the year-ago quarter to $3.644 billion, breaking down to $1.30 per share, right inline with analysts' consensus estimate. The GAAP earnings included after-tax special items of $772 million, consisting of net charges related to the restructuring by Cordis Corporation, the net impact of expenses related to litigation, DePuy ASR™ Hip recall costs, and a currency adjustment related to the acquisition of Synthes, Inc.

J&J's newest CEO, Alex Gorsky, said, "Our talented associates around the world are building a strong foundation for sustainable growth through meaningful innovations and an expanding global footprint. Our pharmaceutical pipeline continued its strong momentum this quarter with the submission of several new drug applications, as well as strong growth from several recently launched products that meet critical patient needs. The completion of the Synthes acquisition also marks an important milestone in strengthening our leadership in key health care markets, creating a powerful portfolio of orthopaedic and neurological solutions to advance patient health and well-being."

The company reduced its FY12 EPS outlook from $5.07-$5.17 previously to $5.00-$5.07. The Street is currently anticipating FY12 EPS of about $5.14. J&J said the outlook excludes the impact of special items and reflects the negative impact of recent currency movements, partially offset by the positive contribution from the Synthes acquisition.

Shares of J&J are down 1.4 percent to $67.50 at last check.

Earnings Guidance