Johnson & Johnson on Tuesday lowered its full-year gross sales and earnings outlook, and stopped offering Covid-19 vaccine gross sales steering attributable to a world provide surplus and demand uncertainty.

J&J is now forecasting 2022 gross sales of $94.8 billion to $95.8 billion, about one billion {dollars} decrease than the steering offered in January. The corporate lowered its full-year adjusted earnings per share by 25 cents to between $10.15 to $10.35, from a earlier forecast of $10.40 to $10.60.

J&J reported first-quarter gross sales of $23.4 billion, barely lacking Wall Road expectations however rising 5% over the identical quarter final yr. The corporate posted earnings of $2.67 cents per share, a 3.1% improve over the identical interval of 2021 and beating expectations. J&J reported web earnings of $5.15 billion, a virtually 17% lower over the primary quarter of 2021.

The corporate bought $457 million of its Covid vaccine globally. CFO Joe Wolk mentioned mentioned growing nations have restricted capability in phrases refrigeration capability and getting photographs in phrases, which has created a backlog of the vaccines. When requested about now not offering a gross sales outlook for the photographs, Wolk mentioned it was uncommon to offer steering for a selected product to start with.

“We did it final yr as a result of we understood the Road had an expectation or not less than an pleasure round understanding how vaccine gross sales may play out but it surely was by no means materials,” Wolk advised CNBC’s Meg Tirrell, noting that the vaccine isn’t for revenue and would not impression the corporate’s backside line.

This is how J&J carried out in contrast with what Wall Road anticipated, based mostly on analysts’ common estimates compiled by Refinitiv:

• Adjusted EPS: $2.67 per share, vs. $2.58 anticipated
• Income: $23.4 billion, vs. $23.6 billion anticipated

J&J reported $12.87 billion in pharmaceutical gross sales, a rise of 6.3% over the identical quarter final yr. The corporate’s medical units enterprise grew by 5.9% to $6.97 billion in gross sales in comparison with the primary quarter of 2021. Gross sales at J&J’s client well being enterprise, which it’s spinning off right into a separate publicly traded firm, declined 1.5% to $3.57 billion in comparison with the identical interval final yr.

In prescription drugs, Wolk mentioned new prescriptions slowed in early January when the omicron Covid variant was sweeping the U.S., however picked up in February and March. He mentioned J&J’s medical units enterprise led the corporate’s progress with an uptick generally and superior surgical procedure in addition to orthopedics. The corporate’s medical units phase has beforehand struggled throughout Covid surges, when elective procedures are delayed as a result of hospitals are overwhelmed with sufferers who’re sick with the virus.

Wolk mentioned client well being was hit by provide constraints for some product elements and packaging supplies, significantly in pores and skin well being and wonder. Nevertheless, he mentioned demand is robust for client well being merchandise, notably over-the-counter medication akin to Tylenol and Motrin, and J&J expects pores and skin well being and wonder to rebound later within the yr.

J&J’s board has accredited a 6.6% quarterly dividend improve to $1.13 as a result of firm’s robust 2021 efficiency.

This can be a growing story. Please test again for updates.