Healthcare and consumer products giant Johnson & Johnson (click ticker for report: JNJ) reported second quarter earnings that were about in-line with expectations Tuesday morning. The firm posted adjusted earnings of $1.30 per share, a penny shy of expectations and down 2% on a year-over-year basis. Revenue was about $200 million lower than expected, but for a company that did $16.5 billion in revenue in the quarter, we think that difference is fairly immaterial.

When adjusting for currency effects, Johnson & Johnson’s international businesses performed fairly well, and in many respects, outperformed its US counterparts. The US consumer business’ revenue declined 1.9% from the same period a year ago, but internationally, it advanced 2% (net of currency effects). The firm’s pharmaceutical business performed well internationally thanks to the launch of several patent-protected drugs in Europe, increasing 15.5% year-over-year (excluding currency fluctuations). This compares to a decline of 4.5% in its US business. Medical device sales grew 2.9% in the US and advanced 3.8% on a constant currency basis internationally. We expect performance in the medical-device segment to accelerate once its acquisition of Synthes is fully integrated.

Though the firm lowered its full-year earnings-per-share outlook to $5.00-$5.07 from $5.07-$5.17, this updated outlook is mostly due to differences in currencies. Therefore, we feel the update is relatively immaterial to our estimate of the company’s intrinsic valuation. Johnson & Johnson scores a rare 9 on our Valuentum Buying Index, suggesting that the shares look very enticing at current levels. We also think the firm looks extremely attractive as a dividend growth investment, as there is an excellent chance the firm continues to increase its dividend many, many years into the future (and at a nice annual clip).