By
Steve Muchoki
July 20th, 2023
The boost from the COVID vaccine sales, among other factors, has pushed Johnson & Johnson to increase its full-year earnings guidance.
Johnson & Johnson (NYSE: JNJ) said sales generated from the sale of its Covid vaccine in the third quarter amounted to $502 million. This substantial sum is enough to boost the American pharmaceutical giant’s Q3 earnings report beyond Wall Street’s estimates. However, J&J missed analysts’ revenue estimates by about $380 million. According to the company’s chief financial officer Joseph Wolk, this is because of issues from the Covid vaccine and medical device unit.
According to Refinitiv’s average-estimate compilation, J&J’s adjusted EPS was $2.60 per share, higher than Wall Street’s expected $2.35. However, the company’s revenue accrued was $23.34 billion, lower than the $23.72 billion expected.
Furthermore, J&J boosted its full-year earnings guidance to between $9.77 per share and $9.82 per share. Its previous estimates stood at $9.60 to $9.70 per share. Furthermore, the leading pharmaceutical company is anticipating a sales range of between $94.1 billion and $94.6 billion. It was previously between $93.8 billion and $94.6 billion.
Johnson & Johnson’s shares were up more than 1% in premarket trading. Plus, the company maintained its Covid vaccine sales outlook for the year at $2.5 billion. J&J’s pharmaceutical unit, which developed the single-shot Covid vaccine, had accrued $12.9 billion in revenue, a 13.8% increase YoY. This comes amid the criticism J&J weathered over how it handled the opioid situation, as well as its less-potent subsequent Covid vaccine. In addition, according to Wolk, the corporation also experienced, “fluctuations in elective procedures with the delta variant.”
Amid Huge Vaccine Sales Report, Johnson & Johnson Wants FDA to Approve Its Covid Booster Dose
Earlier in the month, J&J petitioned the Food and Drug Administration to authorize a booster dose of its single-shot Covid vaccine. The regulatory agency is yet to issue a final decision on the matter. However, an advisory committee made some concessions on Friday. The committee said the FDA should authorize the booster doses to Americans who already received the initial vaccine jab. The total number of eligible recipients in this category is more than 15 million.
Johnson & Johnson also experienced a small hiccup in the distribution of some of its Covid vaccine shots from India. Based in Hyderabad biopharma company Biological E, had some 35 lakh vaccine supplies stuck at the country’s apex vaccine testing laboratory due to pending data. Notwithstanding, J&J expects to overcome this.
In a press release, outgoing Johnson & Johnson CEO Alex Gorsky said that the pharmaceutical company’s latest financial results are solid. He credits this to a thriving pharmaceutical market, ongoing recovery in Medical Devices, and strong Consumer Health growth. For instance, J&J’s consumer unit generated $3.7 billion in revenue, representing a 5.3% YoY. Popular products such as the Neutrogena facial cleanser and Listerine mouth wash are staples of the company’s consumer unit.
Furthermore, J&J’s medical device unit raked in $6.6 billion for the same period, an 8% increase YoY. Last year, the unit endured some operational setbacks in the heat of the pandemic as hospitals postponed elective surgeries during the mandatory government-imposed quarantine.
At the time of writing, JNJ stock is 2.72% up trading at $164.47.
