Daily Management Review

J&J Cancels Its COVID Vaccine Sales Prediction And Lowers Its Profit Forecast


J&J Cancels Its COVID Vaccine Sales Prediction And Lowers Its Profit Forecast
Due to demand uncertainties and an excess supply of other injections, Johnson & Johnson lowered its full-year earnings prediction on Tuesday and said it could no longer provide a forecast for sales of its COVID-19 vaccine.
The single-dose vaccination, which has performed badly in comparison to rivals due to low demand in the United States and safety concerns, was expected to generate up to $3.5 billion in sales, according to the company.
In the first quarter, the vaccine, which is sold at a "not-for-profit" price, brought in $457 million. Due to production difficulties and insufficient global demand, it trailed competing mRNA injections in sales last year.
Sales of Pfizer Inc's COVID vaccine produced with BioNTech are expected to reach $32 billion in 2022, while Moderna expects $21 billion.
Due to a higher currency, J&J now expects full-year adjusted profit to be between $10.15 and $10.35 per share, down from a previous prediction of $10.40 to $10.60 per share.
Overall first-quarter sales of $23.43 billion fell short of the $23.61 billion forecasted by Refinitiv.
"The slight miss was really around the COVID-19 vaccine and quite frankly it met our internal expectations. There was just a disconnect into how the Street assumed it was going to play out over the year," Chief Financial Officer Joseph Wolk told CNBC.
While sales in its consumer health and medical device units exceeded expectations, sales in its big pharmaceuticals segment, at $12.87 billion, fell short of predictions of $13.6 billion.
For the rest of the year, J&J cautioned that supply chain bottlenecks in its consumer health sector would hurt sales of its skin health and beauty products.
J&J earned $2.67 per share excluding items, exceeding the market's expectation of $2.56 per share.
Investors will be searching for more clarification on the impact of the Russia-Ukraine situation and skyrocketing prices, according to Citi analyst Joanne Wuensch, who said the company's earnings "raise more concerns than it answers."