‘we’re very well positioned for 2022’

Johnson & Johnson (NYSE: JNJ) on Tuesday reported lower-than-expected revenue for its fiscal fourth quarter. Shares still jumped 2.5% this morning on strong guidance for the future.

Q4 financial performance

Johnson & Johnson reported $4.736 billion in net income ($1.77 per share) versus the year-ago figure of $1.738 billion (65 cents per share). On an adjusted basis, it earned $2.13 per share on $24.804 billion in revenue that represents an annualised growth o 10.4%, as per the earnings press release.

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According to FactSet, experts had forecast a marginally lower $2.12 in adjusted EPS but a higher $25.284 billion in revenue for the recent quarter. Sales from consumer health were up 1.1%, while pharma and medical devices noted a 16.5% and 4.1% increase, respectively.

In November, J&J said it plans on splitting into two separate publicly traded companies; one will focus on consumer products and the other on pharmaceuticals and medical devices.

Future guidance and CFO’s remarks

Johnson & Johnson expects its sales to hit $100 billion this year versus the FactSet consensus for $98 billion – below the lower end of the company’s guidance. It forecasts $10.40 to $10.60 in full-year adjusted EPS compared to analysts at $10.35. On CNBC’s “Squawk Box”, CFO Joseph Wolk said:

Headwinds like strengthening dollar, omicron, labour shortage, supply constraints, and higher transportation costs will be short-lived. So, H2 of 2022 will be stronger than H1, but we’re very well-positioned for 2022, hopefully, close to the lowest level of net debt we’ve had in years.

Despite challenges, Wolk said 2021 was a solid year with a 13% top-line growth and a record $15 billion investment in R&D. The stock gained just under 10% last year.