Johnson & Johnson (JNJ) posted better-than-expected second quarter earnings Tuesday but trimmed its full year sales and profit forecasts owing to the impact of a stronger U.S. dollar.
Johnson & Johnson said adjusted earnings for the three months ending in June were pegged at $2.59 per share, up 4.4% from the same period last year and 5 cents ahead of the Street consensus forecast. Group revenues, Johnson & Johnson said, rose 3% to $24 billion, a figure that also topped analysts' estimates of a $23.81 billion tally.
Pharmaceuticals sales were up 6.7% to $13.332 billion while Covid vaccine sales, Johnson & Johnson said, more than doubled from last year to $544 million.
Looking into the 2022 financial year, Johnson & Johnson trimmed its forecast for adjusted earnings to between $10.00 to $10.10 per share, down from its prior forecast of $10.15 to $10.35 per share, with sales in the region of $93.3 to $94.3 billion. That's down from its previous estimate of $94.8 billion to $95.8 billion, although that tally included vaccine sales.
A stronger dollar erodes the value of overseas sales, and makes profits generated in foreign markets more costly to repatriate. The U.S. dollar index, which tracks the greenback against a basket of six major global currencies, has risen more than 12% so far this year and reached a fresh two-decade peak earlier this month.
"Our solid second quarter results across Johnson & Johnson reflect the strength and resilience of our company’s market leadership in the midst of macroeconomic challenges,” said CEO Joaquin Duato. “I am continually energized by the focus and passion of my Johnson & Johnson colleagues and their dedication toward delivering transformative healthcare solutions to patients and consumers around the world.”
Johnson & Johnson shares were marked 0.22% lower in early Tuesday trading immediately following the earnings release to change hands at $174.10, clipping its year-to-date gain to around 3%.
