Johnson & Johnson (NYSE:JNJ) saw its share tick higher in premarket trade after it reported a hike in fourth quarter sales.
The healthcare giant however slipped into the red, due to the new tax law, which saw it make a tax provision charge of US$13.27bn.
READ: Johnson & Johnson ups full year guidance after third quarter beats market expectations
In a statement, the company recorded a loss of US$10.71bn, or US$3.99 a share, from the profit of US$3.81bn or US$1.38 a share, posted the previous year.
Excluding special items, including the tax provision, J&J's profit rose 9.5% to US$4.78bn, or US$1.74 a share, beating market consensus for an adjusted earnings of US$1.72.
One of the largest U.S. health-products companies by revenue, J&J said during the quarter, sales shot up by 11.5% to US$20.2bn, led by its pharmaceuticals business, which saw an 18% hike in sales.
Wall Street’s consensus was for US$20.08bn.
Its international pharmaceutical business grew by 21%.
2018 outlook
J&J is now expecting 2018 sales to come in between US$80.6bn and US$81.4bn while adjusted earnings per share is seen at between US$8 and US$8.20.
The guidance is on the higher end of market expectations for a full-year adjusted earnings of US$7.87 on revenue of US$80.7bn.
Like other big corporate names, Chief Executive Alex Gorsky said the new tax law "enables Johnson & Johnson to invest in innovation at higher levels to help address the most challenging unmet medical needs" in the business.
The short-term government funding bill that Congress passed on Monday included language suspending the 2.3% medical-device excise tax this year and in 2019.