Johnson & Johnson (JNJ) reported $502 million in Covid vaccine sales on Tuesday and beat Wall Street’s profit forecasts, leading JNJ stock to pop.
Sales of the Covid vaccine came in lighter than expected, Edward Jones analyst Ashtyn Evans said in a report to clients. But the Dow Jones company still expects $2.5 billion in sales of the one-shot vaccine this year. The news comes shortly after a Food and Drug Administration panel of experts endorsed J&J’s Covid booster shot at least two months after the first dose.
Total sales narrowly lagged forecasts. Evans cited the low Covid vaccine sales and the delta variant’s impact on elective surgical procedures. Some patients are still delaying elective procedures to avoid the possibility of a Covid exposure.
But “growth continues to be driven by strong sales growth in the pharmaceutical segment, particularly from cancer drugs and infectious disease products,” Evans said. She kept her buy rating on JNJ stock.
JNJ Stock: Earnings Beat, Sales Light
During the third quarter, Johnson & Johnson earned $2.60 per share on $23.34 billion in sales. Profit beat the forecast of analysts polled by FactSet for $2.35 a share. But sales were slightly below analysts’ call for $23.64 billion.
On a year-over-year basis, sales increased 10.7% and earnings rose 18.2%.
The strongest growth came from Johnson & Johnson’s infectious diseases portfolio, which includes the Covid vaccine. Overall, sales surged 60.6% on a strict as-reported basis to $1.39 billion. Revenue from cancer drugs advanced 17.1% to $3.67 billion.
But the medical devices segment struggled. Overall, sales increased 8% to $6.64 billion with the best growth coming from interventional solutions. But revenue from the orthopedic segment crept up just a fraction. Sales of spine, sports and other orthopedics sank 5.3% to $705 million.
Covid Vaccine Guidance Reiterated
For the year, Johnson & Johnson raised the low end of its sales outlook. Now, the company expects $91.6 billion to $92.1 billion in full-year sales. In addition, J&J called for $2.5 billion in sales from its Covid vaccine. The company also expects to earn $9.77-$9.82 per share, up from its prior guidance for $9.60-$9.70 a share.
JNJ stock analysts called for Johnson & Johnson to earn $9.71 a share on $94.36 billion in sales.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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