Published - Apr 20, 2022 @ 3:51 PM (EET)

For the first quarter of 2022, healthcare behemoth Johnson & Johnson (NYSE:JNJ) posted mixed results, having surpassed earnings but missed revenue expectations.

Driven primarily by a 6.3% and 5.9% year-over-year increase in the Pharmaceutical and MedTech segments, quarterly revenues stood at $23.4 billion, up 5% from the same quarter last year.

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Spurred by growth in contact lenses and artificial-knee replacements, revenues from J&J's medical-device unit were $6.97 billion. Pharmaceutical revenues of $12.87 billion were driven by treatments for several immune-mediated inflammatory diseases.

However, the figure failed to meet estimates of $23.67 billion. Adjusted earnings per share (EPS) rose 3.1% to $2.67, above Wall Street estimates of $2.58.

Additionally, Johnson & Johnson cut its full-year guidance of $95.9 billion to $96.9 billion from a previous projection and now expects revenue of $94.8 billion to $95.8 billion.

J&J expects earnings for 2022 to be in the range of $10.15-$10.35 per share against the consensus estimate pegged at $10.52 per share.

Looking ahead, CEO Joaquin Duato remains confident in the future of Johnson & Johnson as they "continue advancing their portfolio and innovative pipeline."

COVID-19 VACCINE

As uncertainty looms over how the pandemic will affect demand, Johnson & Johnson suspended its full-year sales forecast for its Covid-19 vaccine.

In its most recent quarter, the healthcare-products company said that Covid-19 shots helped lift over sales, having sold $457 million of the vaccines. Shortly after the vaccine shot received authorization in the U.S., in the same period last year, the company's vaccine sales were $100 million.

Vaccine matters aside, Chief Financial Officer Joseph Wolk said the new guidance reflects an expectation that negative currency-exchange trends could reduce full-year sales by $2.5 billion and cut adjusted earnings by 45 cents a share.

STOCK RATING

Wall Street analysts are cautiously optimistic about the stock based on six Buys and five holds and have a Moderate Buy Consensus rating.  

The stock's average price target of $190.09 implies an upside potential of 3.8% from current levels. Over the past year, shares of the company have grown 9.9%.

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PRICE TARGET:  In Tuesday's extended trading session, shares rose almost 3.5% to close at $183.78.

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