Johnson & Johnson stock knocked by stronger dollar

Johnson & Johnson topped Q2 earnings expectations on Tuesday, but the company stock toppled on its trimmed profit outlook. On today’s stock market, JNJ stock rose fell 1.5% to 171.69, according to observers this could be attributed to the overall strength of the US dollar during Q2.

The best performance came out of J&J’s pharmaceuticals division where sales climbed 6.7% on a strict, as-reported basis to $13.32 billion.

Overall, the health care giant reported adjusted earnings of $2.59 a share on sales of $24.02 billion in the second quarter. Analysts polled by FactSet expected J&J to earn $2.54 a share on $23.77 billion in sales. On a year-over-year basis, earnings rose 4% while sales climbed 3%.

That reading narrowly topped forecasts. Psoriasis treatment Stelara and cancer drug Darzalex were bolstered as strong performers. The company also reported unexpected strength for its one-shot Covid vaccine, which brought in nearly double what analysts expected. Sales were $544 million vs. forecasts for $278 million.

The two key drivers of upside were Covid vaccine sales $266 million above consensus and Darzalex sales $168 million above. The two key shortfalls vs. consensus were Imbruvica $130 million below and pulmonary hypertension (treatments) $74 million below.