Johnson & Johnson Becomes The First COVID-19 Vaccine Producer To Cut Sales Guidance

Johnson & Johnson (NYSE: JNJ) reported their first quarter results earlier today. The company reported first-quarter sales of $23.43 billion, up 5% year over year, along with net earnings of $5.15 billion and earnings per share of $1.93, both of which were down almost 17% year over year. As a result the company has lowered its guidance for full-year 2022.

Johnson & Johnson now expects total sales to come in between $94.8 billion and $95.8 billion for the year, versus its previous guidance in January of $95.9 billion to $96.8 billion. It has also lowered its adjusted EPS which is now expected to be between $10.15 and $10.35 versus its previous estimate of $10.40 to $10.60.

Part of the guidance cut comes from Johnson & Johnson suspending COVID-19 vaccine sales estimates, citing a global supply surplus and demand uncertainty. This is the first of the many COVID-19 vaccine manufacturers to suspend guidance associated with the COVID-19 vaccine sales. The company’s CFO, Joseph Wolk said on the earnings call that due to “vaccine hesitancy in developing markets,” limited capacity due to refrigeration issues has created the surplus.

Johnson & Johnson previously told investors that as much as $3.5 billion in 2022 sales could come from their vaccine with the segment amounting to $2.39 billion last year. Though the vaccine sales do not impact the bottom line, as it is being sold at a $0 profit, the company reported $457 million in COVID-19 vaccine revenue this quarter, primarily from international orders.

Moderna (NASDAQ: MRNA), another pharmaceutical company, comparatively has forecasted $21 billion in vaccine revenue. During their second-quarter earnings call, Moderna’s CEO Stephane Bancel commented that they expected supply to be in the range of 2 billion to 3 billion doses in 2022 and believe that yearly opportunity should be at least 1 billion.

Moderna sold 807 million doses of its COVID-19 vaccines in 2021, which brought in $17.7 billion in sales. Of that $17.7 billion in sales, $5.4 billion was generated by the United States while $12.3 billion was from the rest of the world.

Lastly, Pfizer (NYSE: PFE) during their full-year 2021 results on February 8 said that they were raising their COVID-19 vaccine sales estimates by $1 billion to $32 billion for the full year 2022. Analysts have a consensus estimate that Vaccines revenue will be $40.8 million for the full year. The company saw COVID-19 vaccine sales of $36.78 billion in 2021.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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