In 4Q, J&J Beats Profit And Revenue Forecasts

(CTN News) – Although a strong dollar and declining sales of the COVID-19 vaccine led to a decline in revenue for J&J, the company beat earnings expectations in the fourth quarter of 2022.

The health care giant also announced Tuesday that its earnings for 2023 will exceed expectations. In the early morning trading session, the company’s shares started to climb.

During the fourth quarter of 2014, J&J reported a decline in earnings by 26% to $3.52 billion and revenue dropped 4.4% to $23.71 billion.

As a result of the strong U.S. dollar, which is currently worth more than a euro, company sales were negatively affected last year. J&J, which is one of the largest pharmaceutical companies in the world, brings in nearly half of its sales from outside the country. This can affect sales for companies that do a lot of international trade.

In order to report earnings, companies must convert international sales into dollars when they report their earnings. As a result of the stronger dollar, the value of those sales decreases. Additionally, it gives foreign products a price advantage in the United States as a result of this policy.

Additionally, Johnson & Johnson reported that its one-shot COVID-19 vaccine, which brought in $689 million in revenue from international markets, did not generate any U.S. sales in the quarter.

Additionally, the company booked costs in the fourth quarter for the process of winding down production of the vaccine. As a result of a small but serious risk of blood clots, U.S. regulators have strictly limited who can receive J&J’s shot due to the possibility of serious complications.

As a result of the separation of its consumer health business, Johnson & Johnson now sells prescription drugs and medical devices, including popular products such as Band-Aids.

Overall, J&J was able to generate adjusted earnings of $2.35 per share in the fourth quarter of 2015.

The FactSet survey of analysts predicted earnings per share of $2.23 on revenues of $23.9 billion based on the consensus estimate of analysts.

It is expected that the company will achieve adjusted earnings per share between $10.40 and $10.60 by 2023. This is a range that starts out well above what Wall Street is expecting.

Premarket trading for for shares J&J, which is based in New Brunswick, New Jersey, was up 1%, or $1.68, to $169.99 at the time of writing.

Is J&J splitting into two companies?

Why Johnson & Johnson is splitting itself into two publicly traded companies. Johnson & Johnson, the biggest pharmaceutical company in the U.S. based on market cap, announced in November 2021 it plans to spin off its consumer business into a new publicly traded company by November 2023.

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