J&J's Q1 sales up 5% YoY to $23.4B

Pharmaceutical giant Johnson and Johnson’s (J&J) shares traded 1.25% lower after the company announced its total Q1 sales came in at $23.4 billion, rising 5.0% YoY but slightly missing expectations and posting weaker margins and cash flows.

The company's net earnings decreased by 16.9% to $5.15 billion, and its diluted earnings per share (EPS) fell by 16.8% to $1.93 per share over the same period.

Sales from the Pharmaceutical division rose 6.3% YoY to $12.87 billion, while global sales of blood cancer drug Darzalex grew 36% YoY to $1.86 billion. Global sales of Stelara treating immune-mediated inflammatory diseases, rose +6.5% YoY to $2.29 billion.

The company saw a 13.8% YoY decline in global sales of anticoagulant drug Xarelto to $508 million. J&J's Consumer Health segment sales declined 1.5% YoY to $3.59 billion as sales from MedTech segment grew 5.9% YoY to $6.97 billion.

Although the company quoted global oversupply and demand uncertainty as the main things to blame for apparently weaker results, we know that the costly J&J vaccine essentially lost competition against peers Moderna and Pfizer, while anti-Covid sanitary and hygiene production faced rather limited popularity in contrast with similar items produced by competitors such as 3M (MMM). Subsequently the company reported that it is suspending Covid-19 Vaccine sales guidance.