Johnson & Johnson (JNJ, $171,69) on Tuesday reported quarterly results that beat analysts' estimates on strong demand for cancer drug Darzalex and its COVID-19 vaccine, even as the company cut its full-year adjusted profit forecast due to a stronger dollar. It came out with quarterly earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.57 per share. This compares to earnings of $2.48 per share a year ago.
The best performance came out of J&J's pharmaceuticals division, which saw sales climb 6.7% on a strict, as-reported basis to $13.32 billion. The company also reported unexpected strength for its one-shot Covid vaccine, which brought in nearly double what analysts expected. Sales were $544 million vs. forecasts for $278 million. J&J has joined other major U.S. multinationals with sizeable international operations, including Microsoft (MSFT) and IBM, in warning that a stronger dollar would hurt overseas sales. The dollar has soared 12% this year through July and is expected to remain strong for at least the next three months, a Reuters poll of FX analysts showed.
"We do know that while folks are looking to generally cut back spending, that's been in entertainment, dining out, but when it comes to healthcare, better health, looking better, products like Aveeno, Neutrogena, Tylenol, Listerine, they seem to do well, and consumers will prioritize those," said Chief Financial Officer Joseph Wolk.