Johnson & Johnson On Tuesday, we lowered our full-year sales and revenue outlook and stopped offering COVID-19 Guidance on vaccine revenues due to global supply surplus and demand uncertainty.
J & J currently forecasts 2022 sales of $ 94.8 billion to $ 95.8 billion, about $ 1 billion lower than the guidance provided in January. The company reduced adjusted earnings per share for the full year from the previous forecast of $ 10.40 to $ 10.60, down 25 cents to between $ 10.15 and $ 10.35.
In J & J’s earnings announcement late Tuesday morning, CFO Joe Wolk said the company is facing economic headwinds from rising input costs and rising labor, energy and transportation prices. .. According to Wolk, J & J is also facing supply constraints on some commodities.
J & J’s first-quarter sales were $ 23.4 billion, slightly below Wall Street’s expectations, but up 5% compared to the same quarter last year. The company generated 2.67 cents per share, more than expected, up 3.1% in the same period in 2021. J & J’s net income was $ 5.15 billion, down about 17% from the first quarter of 2021.
Based on the analyst’s average estimates compiled by Refinitiv, J & J’s performance compared to what Wall Street expected is:
- Adjusted EPS: $ 2.67 per share, expected $ 2.58
- Revenue: $ 23.4 billion compared to the expected $ 23.6 billion
The company has sold $ 457 million of Covid vaccines worldwide. Wolk said on Tuesday that developing countries have limited refrigeration and shooting capabilities, which creates an untreated portion of the vaccine. When asked about not providing a shot sales outlook, Wolk said it was unusual to initially provide guidance for a particular product.
“Last year, I realized that I had expectations and excitement about understanding what vaccine sales would be, so I did that,” Wolk told CNBC’s Meg Tyrell.Squawk Box“Note that vaccines are not for profit and do not affect the company’s bottom line. Sales of Covid vaccines have met J & J’s internal expectations, he said.
In Tuesday afternoon trading, the company’s share price rose more than 3% after hitting a 52-week high.
J & J’s pharmaceutical sales were $ 12.87 billion, an increase of 6.3% compared to the same quarter last year. The company’s medical device business was $ 6.97 billion, up 5.9% from the first quarter of 2021. J & J’s consumer health business, which is spinning off to another publicly traded company, saw sales of $ 3.59 billion, down 1.5%.
In pharmaceuticals, new prescriptions slowed in early January, when a variant of Covid Omicron was sweeping the United States, but more prescriptions were added in February and March, Wolk said. He said J & J’s medical device business led the company’s growth not only in orthopedics, but also in the increase in general and advanced surgery.
Ashley Makeboy, head of the medical device business, said in a statement to the company’s earnings that diagnostic procedures were flat and surgery was reduced by about 10% in the United States, where Omicron infections surged in January. However, Mr. Makeboy said he expects surgery to exceed 2019 levels in April as covid infections have decreased and hospital burdens have been reduced.
Wolk said consumer health was hit by constraints on the supply of some product ingredients and packaging materials, especially in skin health and cosmetology. However, with strong demand for consumer health products, especially over-the-counter medicines such as Tylenol and Motrin, J & J expects skin health and beauty to recover by the end of the year.
The company announced that J & J’s board of directors has approved a 6.6% increase in quarterly dividend to $ 1.13 per share due to strong performance in 2021.
