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Johnson & Johnson Cuts 2022 Forecast After 1Q Results

Johnson & Johnson cuts revenue and profit forecast for 2022, expects to stop publishing Covid vaccine sales guidance

J&J has announced that it will cut its full-year sales and profit forecast and stop providing revenue guidance for its COVID-19 vaccine due to global oversupply and unstable demand.

Johnson & Johnson expects 2022 sales to range from $94.8-95.8 billion, which is about $1 billion below the previous guidance it published in January, and the company has also lowered its full-year adjusted earnings per share forecast by about 25 cents to within the range of 10.15 -10.35 dollars compared to the previous range, which ranged between 10.40-10.60 dollars, knowing that it was expecting a strong year, especially for its vaccine. Read more [Johnson & Johnson Expects Strong Vaccine Sales This Year].

The company is facing economic difficulties due to increased expenses in addition to the high prices of labor, energy and transportation, in addition to J&J facing restrictions in the supply of some commodities.

Johnson & Johnson’s sales grew during the first quarter by 5% compared to the same quarter a year ago, to reach $23.4 billion, but it failed to reach analysts’ expectations, which were $23.6 billion, knowing that the company had sold the equivalent of $457 million of its vaccine against Covid. around the world.

As for earnings, Johnson & Johnson earned $2.67 per share, beating expectations of $2.58 and recording a 3.1% growth year-over-year. The company’s net income was $5.15 billion, down 17% compared to the first quarter of 2021.

The company’s shares rose by more than 3% following the news, after recording its highest value during the past 52 weeks, and it is noteworthy that the J&J Board of Directors had agreed to raise the quarterly dividend distribution to shareholders by 6.6% to $1.13 per share due to the company’s strong performance during 2021. To read More [Johnson & Johnson Splits Its Business Into Two Companies].

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