Shares of Johnson & Johnson (NYSE: JNJ) are down 1.0% in premarket trading on Tuesday after the U.S. company reported weaker-than-expected Q1 revenue and lowered its guidance for the future.
J&J Q1 financial highlights
- Net income printed at $5.15 billion that translates to $1.93 per share.
- In Q1 last year, it had reported $6.20 billion profit or $2.32 per share.
- Adjusted for one-time items, J&J earned $2.67 per share.
- Sales jumped 5.0% YoY in the first quarter to $23.43 billion.
- FactSet consensus was for $2.59 of adjusted EPS on $23.62 billion in sales.
- Pharamceutical sales were up 6.3% but missed estimates by $0.6 billion.
COVID-19 vaccine sales sunk to $75 million in the U.S. from $100 million. Moving forward, the New Jersey-headquartered company won’t be offering guidance for the COVID-19 vaccine sales. On CNBC’s “Squawk Box”, CFO Joseph Wolk said:
The slight miss was around the COVID vaccine. But our vaccine was not for profit. We gave guidance for it last year because Street expected it. Suspending guidance allows investors to focus on what’s driving value today and in the future. That’s our core portfolio.
Future guidance and dividend
For fiscal 2022, Johnson & Johnson now forecasts revenue to fall in the range of $94.8 billion to $95.8 billion. It expects $10.15 to $10.35 of adjusted EPS this year, as per the earnings press release. CFO Wolk added:
We think it was a solid start amongst a number of dynamics that are going on across all industries. But there’s positive narratives in all three of our segments. Medical technology really led the growth of the company. We saw uptick in surgical procedures.
The finance chief also confirmed that the pharmaceutical segment picked up again after a hit due to the Omicron variant at the start of the first quarter.
Wolk agreed supply constraints weighed on the consumer segment but expects supply chain to improve throughout the rest of the year. Also on Tuesday, J&J announced a 6.6% increase in its quarterly dividend.
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Source: https://invezz.com/news/2022/04/19/jnj-q1-results-theres-positive-narratives-in-all-three-of-our-segments/