Shares of Johnson & Johnson (JNJ -0.18%) rallied 3% on Tuesday, following the release of the healthcare behemoth's first-quarter financial results.
J&J's revenue grew by 5% to $23.4 billion. The gains were driven by a 6.3% rise in the company's pharmaceutical sales and a 5.9% increase in medical device sales. A 1.5% decline in consumer health revenue, which was hurt by global supply chain disruptions, partly offset these gains.
"Our first-quarter results demonstrate strong performance across the enterprise, despite macro-economic headwinds," CEO Joaquin Duato said in a press release.
All told, J&J's adjusted earnings per share (EPS) increased 3.1% to $2.67. That was above Wall Street's estimates, which had called for adjusted per-share profits of $2.58.
However, J&J cut its full-year guidance. Management now expects revenue of $94.8 billion to $95.8 billion, down from a prior projection of $95.9 billion to $96.9 billion. It also reduced its adjusted EPS forecast to a range of $10.15 to $10.35, down from $10.40 to $10.60.
Notably, J&J said it would suspend its guidance for COVID-19 vaccine sales due to a global supply surplus. But the company said that it does not earn a profit from these vaccine sales, so the change would not impact its adjusted earnings figures.
J&J's proven ability to consistently generate profits in all manner of market environments prompted it to boost its quarterly cash dividend by 6.6%, to $1.13 per share. "In recognition of our 2021 results, strong financial position, and confidence in the future of Johnson & Johnson, the board of directors has voted to increase the quarterly dividend for the 60th consecutive year," Duato said.