Johnson & Johnson (NYSE:JNJ)’s rosy 2023 earnings forecast failed to take the sting off of moderated sales growth and inflationary pressures during the fourth quarter of 2022.
For the three-month period to end December 2022, the consumer products and pharmaceutical giant beat on adjusted profit expectations at $2.35 a share, compared to average analyst estimates of $2.23.
But revenue fell 4.4% from the same period a year ago to $23.7 billion, just shy of Wall Street expectations.
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J&J’s pharmaceutical business underperformed in 4Q with reported sales falling 7.4% to $13.2 billion. The firm attributed the decline to its COVID-19 vcaccine and the negative effects of the strong dollar.
Despite a strong start to the trading day on Tuesday, shares of J&J were trading around 0.7% lower in New York.
That said, J&J set its forecast stronger-than-expected 2023 adjusted earnings at $10.45 to $10.65 a share in a statement, above analysts’ average estimate of $10.35 a share.
Revenue for the year will be in the range of $96.9 billion to $97.9 billion, the company stated.
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