Johnson & Johnson (JNJ) Shares Dip After Revenue Miss, Suspended COVID Vaccine Sales Guidance; Results Seen as 'Mixed'

Shares of Johnson & Johnson (NYSE: JNJ) are down in premarket trading Tuesday after the company reported Q4 results.

J&J reported Q4 adjusted EPS of $2.67, topping the consensus estimates of $2.59 per share. Sales in the fourth quarter came in at $23.43 billion, missing the consensus projection of $23.66 billion.

Revenue from coronavirus vaccine sales totaled $457 million in the period, well below the analyst estimates of $784.7 million. The company generated $12.87 billion in pharmaceutical sales, short of the estimated $13.52 billion.

Worldwide medical device sales totaled $6.97 billion, up 6% YoY, and above the analyst consensus of $6.66 billion. Consumer healthcare sales came in at $3.59 billion, just above the expected $3.52 billion.

J&J cut its adjusted EPS full-year outlook from $10.40 - $10.60 to $10.15 - $10.35, compared to the consensus estimates of $10.43 per share.

The company now expects FY sales in the range of $94.8 billion to $95.8 billion, down from the previous range of $98.9 billion to $100.4 billion, and below the analyst estimates of $99.23 billion.

The company suspended coronavirus vaccine sales guidance due to global supply surplus and demand uncertainty, with no impact on the adjusted operational EPS outlook.

"Our first-quarter results demonstrate strong performance across the enterprise, despite macro-economic headwinds," the company said in a statement.

J&J raised its quarterly dividends from $1.06 to $1.13 per share, compared to the consensus estimates of $1.11 per share.

Cantor Fitzgerald analyst Louise Chen said results were mixed.

“Post a modest 1Q22 sales miss and EPS beat, we continue to believe that upward earnings estimate revisions and multiple expansion, to 17-20x 2022E EV/EBIT from 15x now, driven by above-market growth in its key franchises, should move JNJ shares higher,” Chen said in a note.

By Senad Karaahmetovic

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