Johnson & Johnson (NYSE:JNJ) stock fell 1.08% (As on October 19, 11:44:28 AM UTC-4, Source: Google Finance) after the company beat Wall Street estimates for quarterly revenue and profit on strong demand for its cancer drug Darzalex and Crohn’s disease drug Stelara while projecting an easing of the hit from surging inflation. However, the company has tightened its full-year adjusted profit forecast range. Sales at pharmaceuticals, the company’s largest unit, rose 2.6% to $13.21 billion in the third quarter. That beat estimates of $13.03 billion, according to six analysts polled by Refinitiv. Sales of cancer drug Darzalex jumped 29.8% to $2.05 billion. The medical devices unit reported a 2.1% rise in sales to $6.78 billion on demand for contact lenses and wound-closure products. The division has been under pressure from extended lockdowns in China and a slow recovery in demand for some non-urgent surgery delayed due to the COVID-19. Consumer Health worldwide adjusted operational sales increased 4.8%. Major contributors to growth include upper respiratory and analgesic products in the over-the-counter franchise, NEUTROGENA and AVEENO in Skin Health/Beauty and Women’s Health products outside the United States.

Moreover, Pharmaceutical worldwide adjusted operational sales grew 9.2%, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, and INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. Also contributing to growth were sales of the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the prevention of the SARS-CoV-2 virus.

JNJ in the third quarter of FY 22 has reported the adjusted earnings per share of $2.55, beating the analysts’ estimates for the adjusted earnings per share of $2.47. The company had reported the adjusted revenue growth of 1.9 percent to $23.79 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $23.34 billion, according to Refinitiv IBES data.

The company said it expects some impact of inflation to ease next year but higher costs of inventory manufactured in 2022 could weigh on 2023 profit. It expects the impact of a stronger dollar to hit 2023 adjusted earnings by between 40 cents and 45 cents.