J&J tops 4Q earnings forecasts as profit, revenue slip

Jan 23, 2023, 1:49 PM | Updated: Jan 24, 2023, 7:55 am
FILE - The Johnson & Johnson logo appears above a trading post on the floor of the New York Stock E...

FILE - The Johnson & Johnson logo appears above a trading post on the floor of the New York Stock Exchange, Monday, July 12, 2021. Johnson & Johnson reports earnings on Tuesday, Jan. 24, 2023. (AP Photo/Richard Drew, file)

(AP Photo/Richard Drew, file)

Johnson & Johnson beat earnings expectations in the final quarter of 2022 even as a strong dollar and sinking COVID-19 vaccine sales hurt revenue.

The health care giant also debuted on Tuesday a better-than-expected 2023 earnings forecast.

J&J said fourth-quarter earnings slipped 26% to $3.52 billion and revenue declined 4.4% to $23.71 billion.

Sales were hurt last year by the strong U.S. dollar, which is currently worth more than a euro. That can affect companies with a lot of international business because they have to convert those sales into dollars when they report earnings.

J&J brings in nearly half of its revenue from outside the United States. The company’s international sales fell more than 11% in the quarter, but that decline was only 1% when not counting exchange rates.

J&J also recorded no U.S. sales in the quarter from its one-shot COVID-19 vaccine, which brought in $689 million in revenue from international markets. U.S. regulators have strictly limited who can receive J&J’s shot due to a small risk of rare but serious blood clots.

Johnson & Johnson sells prescription drugs and medical devices. It is splitting off its consumer health business, which includes well-known products like BandAids.

Chairman and CEO Joaquin Duato said that separation should be completed this year.

Revenue from pharmaceuticals, the company’s largest business, fell 7% to $13.16 billion in the fourth quarter even as worldwide sales of the cancer treatment Darzalex soared nearly 27% to more than $2 billion.

Medical device revenue slipped 1% to about $6.8 billion.

J&J also brought in $3.8 billion in sales from consumer health.

The company booked costs in the quarter from winding down COVID-19 vaccine production, splitting off consumer health and completing its acquisition of cardiovascular technology company Abiomed, a deal it announced in November.

Overall, adjusted earnings totaled $2.35 per share in the fourth quarter.

Analysts expected earnings of $2.23 per share on $23.9 billion in revenue, according to FactSet.

J&J wound up making about $17.9 billion last year on $94.9 billion in revenue. The company saw 15 drugs top $1 billion in sales. That includes Stelara for psoriasis and other inflammatory disorders, which pulled in $9.7 billion.

J&J expects that its top seller will begin losing U.S. patent protection late this year, which will expose the drug to cheaper competition.

For 2023, the company forecasts adjusted operational earnings of between $10.40 and $10.60 per share. That range starts off well above Wall Street expectations for $10.33 per share.

Shares of New Brunswick, New Jersey-based J&J slipped around a dollar to $167.32 in mid-morning trading. Broader indexes also slumped.

The company’s stock climbed about 3% last year while the Dow Jones Industrial Average fell nearly 9%. J&J is a component of the Dow.


Follow Tom Murphy on Twitter: https://twitter.com/thpmurphy

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


FILE - A Boeing 737 Max jet prepares to land at Boeing Field following a test flight in Seattle, Se...
Associated Press

Boeing to be arraigned in court over two Max jet crashes

Boeing representatives and relatives of some of the passengers killed in two crashes of Boeing 737 Max jets will meet face-to-face in a Texas courtroom Thursday, where the aerospace giant will be arraigned on a criminal charge that it thought it had settled two years ago.
12 hours ago
abortion Capital gains tax Olympia meeting legislature abortion...
Associated Press

Washington lawmakers hear testimony on 7 abortion bills

Abortion rights proposals have been front and center in Olympia, Washington, this week as state lawmakers heard hours of public testimony on seven proposals that would reinforce abortion access.
12 hours ago
FILE - The sun dial near the Legislative Building is shown under cloudy skies, March 10, 2022, at t...
Gene Johnson, Associated Press

Justices weigh effort to balance Washington state’s tax code

SEATTLE (AP) — An effort to balance what is considered the nation’s most regressive state tax code came before the Washington Supreme Court on Thursday, with justices hearing arguments about whether they should overturn a prohibition on income taxes that dates to the 1930s. Washington is one of nine states without an income tax, and […]
12 hours ago
Alex Murdaugh becomes emotional after seeing his family in the courtroom as opening statements begi...
Associated Press

1st officer: Alex Murdaugh didn’t cry over dead wife and son

The first officer to arrive after Alex Murdaugh called 911 to report his wife and son were seriously hurt noted at the attorney’s double murder trial Thursday that the suspect was upset but that he had no tears in his eyes. During the first day of testimony, jurors watched Colleton County Sgt. Daniel Greene’s body […]
2 days ago
Members of the South Carolina House Constitutional Laws subcommittee meet to discuss a bill banning...
Associated Press

SC abortion ban gets hearing for first time this session

COLUMBIA, S.C. (AP) — A South Carolina Supreme Court decision five days before the General Assembly returned for 2023 raised the possibility that abortion bans could once more dominate legislative debate in the state. That likelihood increased on Thursday when a House subcommittee approved the first abortion ban to get a public hearing in the […]
2 days ago
FILE - Attendees at BookExpo America visit the HarperCollins Publishers booth in New York on May 28...
Associated Press

HarperCollins, striking workers agree to federal mediation

NEW YORK (AP) — HarperCollins Publishers and the union representing some 250 striking employees have agreed to enter into federal mediation, the first sign of a possible settlement since the work stoppage began in early November. “We are excited to have this opportunity to continue bargaining with HarperCollins and hope they finally are ready to […]
2 days ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
J&J tops 4Q earnings forecasts as profit, revenue slip