Johnson & Johnson (NYSE: JNJ) announced expectations for its Covid vaccine to produce USD3 Billion to USD3.5 Billion in sales throughout 2022. The prediction comes after it posted mixed fourth-quarter results, which beat earnings but missed revenue forecasts.
The holding company reported earnings of USD2.13 per share, compared to the expected USD2.12 a share. Revenue amounted to USD24.8 Billion, lower than analysts anticipated USD25.29 Billion.
Johnson & Johnson now foresees its 2022 financial year adjusted earnings to settle anywhere between USD10.40 to USD10.60 per share, in comparison to the Refinitiv forecast of USD10.35. Shares rose 0.8% in early morning trading following the earnings release.
“Our 2021 performance reflects continued strength across all segments of our business. Guided by Our Credo, I am honored to assume the role of CEO, leading our global teams in continuing our work to deliver life-changing solutions to consumers, patients, and health care providers” said new CEO Joaquin Duato. “Given our strong results, financial profile, and innovative pipeline we are well-positioned for success in 2022 and beyond.”
CFO Joseph Wolk told CNBC that the rising dollar negatively impacted its sales by USD150 Million to USD200 Million. Furthermore, staffing shortages in hospitals due to the omicron Covid variant also caused uncertainty within J&J’s medical devices division, Wolk said. Meanwhile, its consumer health business was affected by various factors including supply chain issues, labor shortages, and increasing transportation costs.
“We think those are short-lived,” Wolk told CNBC’s Meg Tirrell on “Squawk Box.” “We think the second half of 2022 will be stronger than the first half, but some of these dynamics continue into the early part of this year.”