Johnson & Johnson’s revenue for the final quarter of 2022 was down, due in part to sinking COVID vaccine sales, but the company still beat earnings expectations.
The health care giant also debuted a better-than-expected 2023 earnings forecast on Tuesday, and company shares started climbing in early morning trading.
J&J said fourth-quarter earnings slipped 26 percent to $3.52 billion and revenue declined 4.4 percent to $23.71 billion.
Company sales were hurt last year by the strong U.S. dollar, which is currently worth more than a euro. That can affect sales for companies that do a lot of international business, and J&J brings in nearly half of its sales from outside the United States.
Companies have to convert international sales into dollars when they report earnings. The stronger dollar decreases the value of those sales. It also gives foreign products a price edge in the United States.
J&J also again recorded no U.S. sales in the quarter from its one-shot COVID-19 vaccine, which brought in $689 million in revenue from international markets.
The company also booked costs in the fourth quarter for winding down production of the vaccine. U.S. regulators have strictly limited who can receive J&J’s shot due to a small risk of rare but serious blood clots.
Johnson & Johnson sells prescription drugs and medical devices after splitting off its consumer health business, which includes well-known products like Band-Aids.
Overall, adjusted earnings totaled $2.35 per share in the fourth quarter for J&J.
Analysts expected earnings of $2.23 per share on $23.9 billion in revenue, according to FactSet.
For 2023, the company expects adjusted earnings of between $10.40 and $10.60 per share, a range that starts off well above Wall Street expectations.
Shares of New Brunswick, New Jersey-based J&J climbed 1 percent, or $1.68, to $169.99 in premarket trading.
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