JNJ Q1 results: there’s positive narratives in all three of our segments

Shares of Johnson & Johnson (NYSE: JNJ) are down 1.0% in premarket trading on Tuesday after the U.S. company reported weaker-than-expected Q1 revenue and lowered its guidance for the future.

J&J Q1 financial highlights

• Net income printed at $5.15 billion that translates to $1.93 per share.
• In Q1 last year, it had reported $6.20 billion profit or $2.32 per share.
• Adjusted for one-time items, J&J earned $2.67 per share.
• Sales jumped 5.0% YoY in the first quarter to $23.43 billion.
• FactSet consensus was for $2.59 of adjusted EPS on $23.62 billion in sales.
• Pharamceutical sales were up 6.3% but missed estimates by $0.6 billion.

COVID-19 vaccine sales sunk to $75 million in the U.S. from $100 million. Moving forward, the New Jersey-headquartered company won’t be offering guidance for the COVID-19 vaccine sales. On CNBC’s “Squawk Box”, CFO Joseph Wolk said:

Future guidance and dividend

For fiscal 2022, Johnson & Johnson now forecasts revenue to fall in the range of $94.8 billion to $95.8 billion. It expects $10.15 to $10.35 of adjusted EPS this year, as per the earnings press release. CFO Wolk added:

The finance chief also confirmed that the pharmaceutical segment picked up again after a hit due to the Omicron variant at the start of the first quarter.

Wolk agreed supply constraints weighed on the consumer segment but expects supply chain to improve throughout the rest of the year. Also on Tuesday, J&J announced a 6.6% increase in its quarterly dividend.