Johnson & Johnson posted quarterly results on Tuesday that was above analysts’ expectations, thanks to robust demand for cancer medication Darzalex and its COVID-19 vaccination, despite the firm cutting its full-year adjusted profit outlook owing to a stronger currency.

J&J joins the ranks of other big U.S. multinationals with significant worldwide operations, such as Microsoft Corp and IBM, in warning that a higher currency may affect global sales.

However, J&J’s stock jumped 1% in morning trade as the company’s solid second-quarter profit helped soothe investor fears about the impact of the strong currency, which has been pushed by a hawkish Federal Reserve and heightened geopolitical tensions.

Johnson & Johnson’s pharmaceuticals unit, its largest, helped it ease the impact of Chinese lockdowns on medical equipment sales, as well as the impact of inflation and supply problems at its consumer health segment.

In reaction to inflation, the corporation announced price increases for various products such as pain relievers and mouthwash.

“We do know that while folks are looking to generally cut back spending, that’s been in entertainment, dining out,” said Chief Financial Officer Joseph Wolk.

But “when it comes healthcare, better health, looking better, products like Aveeno, Neutrogena, Tylenol, Listerine, they seem to do really well, and consumers will prioritize those.”

Darzalex sales of $1.99 billion exceeded expectations of $1.84 billion.

Sales of the company’s COVID-19 vaccine, which has witnessed delayed demand due to safety concerns and production issues, totaled $544 million, compared to projections of $138 million. The company, which paused its vaccine sales forecast in May, said it was adjusting the shot’s manufacturing capacity due to a vaccine supply glut.

It did not provide specifics, but stated that the adjustments would incur additional costs, which would be represented as a one-time fee. J&J stated that it continues to expect to meet its contractual supply commitments.

Total sales of $24.02 billion, nearly half of which came from outside the United States, exceeded expectations of $23.80 billion.

The company earned $2.59 per share on an adjusted basis, exceeding projections of $2.54 per share.

J&J now estimates full-year adjusted profit of $10.00 to $10.10 per share, up from $10.15 to $10.35 before.

(Adapted from Reuters.com)

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