Johnson & Johnson (NYSE:JNJ) stock rose 0.15% (As on July 20, 11:15:36 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 22. However, Morgan Stanley analyst Terence Flynn took note of a Q2 beat and lowered outlook due to FX headwinds. “The ongoing F/X headwinds were largely anticipated, but the analyst expects a focus on the trajectory of the recovery in Medtech. Hence, we expect a relatively muted stock reaction this morning,” Flynn told clients in a note. Goldman Sachs analyst Chris Shibutani said FX headwinds were “meaningful” while the results reflected “mixed fundamentals.” Johnson & Johnson has trimmed its full-year profit forecast for the second time in consecutive quarters, as a surge in the value of the dollar depresses sales reported outside the US.

JNJ in the second quarter of FY 22 has reported the adjusted earnings per share of $2.59, beating the analysts’ estimates for the adjusted earnings per share of $2.55. The company had reported the adjusted revenue growth of 3 percent to $24.02 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $23.96 billion. Revenue from COVID-19 vaccine sales hit $544 million, more than double the consensus projection of $222.9 million. Pharmaceutical sales totaled $13.32 billion in the period, up 6.7% YoY and above the analyst consensus of $13.06 billion. Johnson & Johnson MedTech, formerly the company’s medical devices segment, experienced a 1.1% decrease in sales, pulling in nearly $6.9 billion in revenues for the three-month period. The company’s consumer health segment also saw a sales dip (1.3%), while the pharmaceutical segment brought in nearly double the MedTech business’ revenues at $13.3 billion. That represented year-over-year growth of 6.7%, driven by a number of therapeutics, including Darzalex, Stelara, Erleada and Tremfya. The company’s Janssen COVID-19 vaccine also contributed to growth.

For the full year, J&J said it expects adjusted EPS in the range of $10 to $10.10, down from the previous forecast range of $10.15 to $10.35, while the analysts were looking for $10.25 per share. The company estimates FY sales of $93.3 billion to $94.3 billion, down from $94.8 billion to $95.8 billion, while analysts were estimating $96.5 billion. J&J said a stronger U.S. dollar has affected the company’s adjusted EPS guidance, though the company reiterated its FY view at midpoints for adjusted operational sales ($97.3 billion to $98.3 billion) and adjusted operational EPS ($10.65 per share to $10.75 per share).