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

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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 healthcare giant also debuted 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. This article was provided by The Associated Press.