Johnson & Johnson Tops Q2 Estimates, Analyst Sees No Surprises in Report
2022.07.19 17:25
Shares of Johnson & Johnson (NYSE:JNJ) are up more than 1% in premarket trading after the company’s coronavirus vaccine sales smashed analyst estimates.
The pharmaceutical giant reported Q2 adjusted EPS of $2.59, up from $2.48 per share in the year-ago period and above the consensus estimates of $2.55 per share. Sales totaled $24.02 billion, up 3% YoY and above $23.96 billion in the year-ago quarter.
Revenue from COVID-19 vaccine sales hit $544 million, more than double the consensus projection of $222.9 million. Pharmaceutical sales totaled $13.32 billion in the period, up 6.7% YoY and above the analyst consensus of $13.06 billion.
For the full year, J&J said it expects adjusted EPS in the range of $10 to $10.10, down from the previous forecast range of $10.15 to $10.35, while the analysts were looking for $10.25 per share.
The company estimates FY sales of $93.3 billion to $94.3 billion, down from $94.8 billion to $95.8 billion, while analysts were estimating $96.5 billion.
J&J said a stronger U.S. dollar has affected the company’s adjusted EPS guidance, though the company reiterated its FY view at midpoints for adjusted operational sales ($97.3 billion to $98.3 billion) and adjusted operational EPS ($10.65 per share to $10.75 per share).
Morgan Stanley analyst Terence Flynn took note of a Q2 beat and lowered outlook due to FX headwinds.
“The ongoing F/X headwinds were largely anticipated, but we expect a focus on the trajectory of the recovery in Medtech. Hence, we expect a relatively muted stock reaction this morning,” Flynn told clients in a note.
Goldman Sachs analyst Chris Shibutani said FX headwinds were “meaningful” while the results reflected “mixed fundamentals.”
