Business

Johnson & Johnson cuts profit forecast

Pharmaceutical giant suspends guidance for Covid-19 vaccine sales on unclear demand

Baby powder maker Johnson & Johnson has cut its profit forecast.

Tue Apr 19 2022 - 17:27

Johnson & Johnson (J&J) cut its annual profit forecast as pharmaceutical sales missed expectations and it suspended its guidance for Covid-19 vaccine sales because of unclear demand and global supply surplus.

Adjusted earnings for 2022 will be $10.15 (€9.40) to $10.35 a share, the company said on Tuesday in a statement, down from an earlier range of $10.40 to $10.60. J&J’s shares fell 0.3 per cent before U.S. markets opened after gaining 3.9 per cent this year before today.

J&J’s drug business generated $12.9 billion in first-quarter sales, missing the $13.5 billion average estimate. While it remains the company’s strongest growth driver, the performance portends poorly what’s expected to be its profit engine after it splits off the consumer division.

Among the sore spots were Covid vaccine sales of $457 million in the first quarter; Wall Street analysts, had estimated $784.7 million.

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J&J announced in November that it would split off its consumer unit from its pharma and devices business.

Meanwhile, the consumer health business brought in $3.6 billion in quarterly revenue, falling 1.5 per cent from a year earlier as US sales faltered.

The group reported quarterly adjusted profit of $2.67 a share, beating analysts’ average estimate of $2.59. Sales for the quarter were $23.4 billion, narrowly missing the average estimate. The company boosted its quarterly dividend to $1.13 a share from $1.06. – Bloomberg

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