Earnings: Intel, Johnson & Johnson

Dow industrial firm: Intel Corp.

Intel Corp. said its third-quarter profit dropped 8 percent as prices for its chips fell. Sales also fell 8 percent to $9.4 billion.

But both numbers were better than Wall Street projected, and Intel offered better-than-expected sales guidance for the fourth quarter.

Net income was $1.9 billion, or 33 cents per share, versus $2 billion, or 35 cents, in the year-ago period. Analysts polled by Thomson Reuters expected 28 cents per share in earnings and $9 billion in revenue.

The company forecast sales of $10.1 billion in the fourth quarter. Analysts expected $9.5 billion.

Intel shares rose 9 cents to close at $20.49 yesterday. The earnings report was released after the market closed. -- The Associated Press

Johnson & Johnson

Johnson & Johnson reported a meager 1 percent increase in third-quarter profit as intensifying generic competition slashed sales of blockbuster prescription drugs.

In addition, the recession hurt consumer-product sales and slowed growth for medical devices, the only J&J segment not declining.

The maker of Band-Aids, biotech drugs and Acuvue contact lenses said it earned $3.35 billion in the quarter, or $1.20 per share. In last year's third quarter, J&J had net income of $3.31 billion, or $1.17 per share.

Analysts polled by Thomson Financial were expecting lower earnings per share, at $1.13, and revenue of $15.19 billion in the latest quarter. New Brunswick, N.J.-based J&J uncharacteristically missed the revenue forecast, with sales of $15.08 billion, down 5 percent from a year ago, as prescription-drug sales plunged 14 percent.

For the first nine months of the year, net income fell 2 percent to $10.06 billion, or $3.61 per share, from $10.24 billion, or $3.60, in the same period in 2008. Revenue fell nearly 7 percent to $45.35 billion.

Shares of J&J were down $1.52, or 2.43 percent, at $61.01. -- The Associated Press