Covid and JNJ earnings Q1 2022 – What We Know!

Johnson & Johnson on Tuesday lowered its full-year gross sales and earnings outlook, and stopped offering Covid-19 vaccine gross sales steering as a consequence of a worldwide provide surplus and demand uncertainty.

J&J is now forecasting 2022 gross sales of $94.8 billion to $95.8 billion, about one billion {dollars} decrease than the steering offered in January. The corporate lowered its full-year adjusted earnings per share by 25 cents to between $10.15 to $10.35, from a earlier forecast of $10.40 to $10.60.

J&J reported first-quarter gross sales of $23.4 billion, barely lacking Wall Avenue expectations however rising 5% over the identical quarter final yr. The corporate posted earnings of $2.67 cents per share, a 3.1% enhance over the identical interval of 2021 and beating expectations. J&J reported web earnings of $5.15 billion, a virtually 17% lower over the primary quarter of 2021.

The corporate offered $457 million of its Covid vaccine globally. CFO Joe Wolk mentioned mentioned creating nations have restricted capability in phrases refrigeration capability and getting pictures in phrases, which has created a backlog of the vaccines. When requested about now not offering a gross sales outlook for the pictures, Wolk mentioned it was uncommon to supply steering for a selected product to start with.

“We did it final yr as a result of we understood the Avenue had an expectation or a minimum of an pleasure round understanding how vaccine gross sales may play out but it surely was by no means materials,” Wolk informed CNBC’s Meg Tirrell, noting that the vaccine isn’t for revenue and doesn’t impression the corporate’s backside line.

Right here’s how J&J carried out in contrast with what Wall Avenue anticipated, based mostly on analysts’ common estimates compiled by Refinitiv:

  • Adjusted EPS: $2.67 per share, vs. $2.58 anticipated
  • Income: $23.4 billion, vs. $23.6 billion anticipated

J&J reported $12.87 billion in pharmaceutical gross sales, a rise of 6.3% over the identical quarter final yr. The corporate’s medical gadgets enterprise grew by 5.9% to $6.97 billion in gross sales in comparison with the primary quarter of 2021. Gross sales at J&J’s client well being enterprise, which it’s spinning off right into a separate publicly traded firm, declined 1.5% to $3.57 billion in comparison with the identical interval final yr.

“Our first quarter outcomes display sturdy efficiency throughout the enterprise, regardless of macro-economic headwinds,” mentioned CEO Joaquin Duato in a press launch. “Wanting forward, I stay assured in the way forward for Johnson & Johnson as we proceed advancing our portfolio and modern pipeline.”

J&J’s board has authorised a 6.6% quarterly dividend enhance to $1.13 because of the firm’s sturdy 2021 efficiency, Duato mentioned.