Johnson & Johnson (JNJ) posted stronger-than-expected third quarter earnings Tuesday, while lifting its full-year profit forecast, as solid pharmaceuticals sales offset a slide in Covid vaccine revenues.
Johnson & Johnson said adjusted earnings for the three months ending in September were pegged at $2.55 per share, down 1.9% from the same period last year but 7 cents ahead of the Street consensus forecast. Group revenues, Johnson & Johnson said, rose 1.9% to $23.8 billion, a figure that also topped analysts' estimates of a $23.34 billion tally.
Pharmaceuticals sales were up 2.6% to $13.24 billion ($12.95) while Covid vaccine sales, Johnson & Johnson said, fell 2.2% from last year to $489 million.
The company also lifted its 2022 earnings forecast by around 5 cents per share, to between $10.70 and $10.75 per share, with adjusted operational sales growth of between 6.7% and 7.2%, up from last month's forecast of between 6.5% and 7.5%.
“Our third quarter performance demonstrates our continued strength and resilience across all three of our businesses,” said CEO Joaquin Duato. “Through the ongoing efforts of our teams around the world, we continue to navigate the dynamic macroeconomic environment and remain focused on delivering transformative healthcare solutions."
"Looking ahead, I remain confident in our business and ability to continue advancing our innovative portfolio and pipeline,” he added.
Johnson & Johnson shares were marked 0.35% lower in early trading following the earnings release to change hands at $165.88 each.
Earlier this fall, Johnson & Johnson said it would completely halt the sale of its iconic talc-based baby powder products next year.
Johnson & Johnson, which faces around 38,000 lawsuits centered around links to cancer-causing asbestos found in the talc-based product , stopped selling Baby Powder in the U.S. and Canada in 2020. The group, which began selling talc-based Baby Powder in 1894, said late Thursday that it will transition to "an all cornstarch-based baby powder portfolio" starting in 2023.
Late last year, Johnson & Johnson noted that costs linked to defending cases linked to allegations that its Baby Powder, and other talc-based products, contained cancer-causing asbestos are close to $1 billion. Another $3.5 billion has been tied to previous verdicts and settlements.
