Johnson & Johnson topped third-quarter expectations thanks to growth in pharmaceutical sales, but the health care giant continued to tread cautiously with its outlook due to the strong dollar.
J&J on Tuesday stuck to the midpoint of its 2022 forecast after lowering expectations the previous two quarters due to the impact of currency exchanges. The company now expects adjusted earnings to range between $10.02 and $10.07 per share.
That’s a narrower forecast than the $10-to-$10.10 range the company predicted in July.
For the full year, analysts expect, on average, earnings of $10.07 per share, according to FactSet.
J&J brings in nearly half of its sales from outside the United States. A strong U.S. dollar that is near parity with the euro can affect sales for companies that do a lot of international business.
They have to convert those 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.
In the third quarter, J&J’s profit climbed 22% to $4.46 billion. Revenue rose 2% to $23.79 billion, and adjusted earnings totaled $2.55 per share.
Analysts were expecting earnings of $2.48 per share on $23.36 billion in revenue, according to FactSet.
Shares of New Brunswick, New Jersey company rose 2% before the opening bell.