(Reuters) – Johnson & Johnson said on Tuesday it expects 2023 profit to beat Wall Street estimates as strong demand for its drugs is expected to ease pressure from inflation and a rising U.S. dollar.
J&J expects strong demand in its pharmaceuticals division, a major source of revenue for the company, as well as in medical devices, as the group prepares to spin off its consumer healthcare business.
In the fourth quarter, sales of its pharmaceuticals reached $13.16 billion, beating analysts’ average estimate of $13.14 billion.
Sales of its cancer drug, Darzalex, brought in $2.08 billion over the same period, beating Wall Street expectations of $2.02 billion, according to average estimates from two analysts polled by Refinitiv.
J&J now expects adjusted earnings of between $10.45 and $10.65 per share in 2023, higher than the average analyst estimate of $10.35 per share.
Sales for the year are expected to rise 3.5% to 4.5% on an adjusted basis, compared to 2022, the group said.
J&J shares rose nearly 1% to $170.28 in pre-market trading.
The healthcare conglomerate also beat fourth-quarter earnings estimates as higher pharmaceutical sales more than offset the impact of the stronger US dollar.
Excluding one-time items, J&J reported quarterly earnings of $2.35 per share, versus consensus expectation of $2.23 per share according to IBES data from Refinitiv.
(Report Manas Mishra and Bhanvi Satija in Bangalore; French version Dagmarah Mackos, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters