Johnson & Johnson is trading at high after the quarterly report
Sales of Johnson & Johnson (JNJ) increased by over 5% in the past quarter, thanks to the success of the pharmaceutical and medical devices business. The strong quarterly report was one driver of the growth of the company’s shares, which are currently trading near 52-week highs.
At the auction on April 20, JNJ’s stock was worth $183.89. Johnson & Johnson’s revenue in the first quarter of 2022 increased by 5% to $23.4 billion. This growth was driven by a 6.3% increase in pharmaceutical sales and a 5.9% increase in medical equipment sales. The consumer goods segment reduced its revenue by 1.5% year-on-year amid global disruptions in supply chains.
But even with a 5% year-on-year increase, Johnson & Johnson’s total revenue was slightly below Wall Street forecasts. In contrast to adjusted earnings per share, which increased by 3.1% to $2.67, beating analysts’ expectations. Despite a good first quarter, Johnson & Johnson management reduces the initial forecast for the whole of 2022.
The company probably does not expect an improvement in supply chains, and in addition, they will minimize sales of its consumer goods in some regions because of geopolitical uncertainty. We expect revenue this year to be between $94.8 billion to $95.8 billion, almost a billion dollars less than the previous forecast.
The new forecast for adjusted earnings per share has also and now stands at $10.15–$10.35. Recall that at the end of 2021, Johnson & Johnson announced its intention to split into two separate companies within the next 24 months. The first company will be responsible for the production of consumer goods, and the second will develop pharmaceutical products.
