(Bloomberg) -- Johnson & Johnson cut its annual profit forecast while suspending its guidance for Covid-19 vaccine sales because of unclear demand and global supply surplus. 

• Adjusted earnings for 2022 adjusted earnings will be $10.15 to $10.35 a share, the company said, down from an earlier range of $10.40 to $10.60.
• The New Brunswick, New Jersey-based drugmaker reported quarterly adjusted profit of $2.67 a share, according a statement Tuesday, beating analysts’ average estimate of $2.59. Sales for the quarter were $23.4 billion, narrowly missing the average estimate.

Key Insights

• J&J’s chief financial officer said last quarter that he expected 2022 sales of $3 billion to $3.5 billion for the company’s coronavirus shot, a figure that reflected contracts reached through January to supply under 1 billion doses this year, primarily to low- and middle-income countries. J&J’s Covid vaccine brought in $457 million in first quarter sales; Wall Street analysts had estimated $784.7 million.
• The drug business continues to drive more than half of J&J’s revenue, bringing in $12.9 billion in the first quarter, underscoring the rationale for the breakup of the conglomerate. The medical device division, which will remain alongside the pharma unit, brought in $6.97 billion.
• Meanwhile the consumer health business, which will soon be a standalone company, brought in $3.6 billion in revenue, a 1.5% decline, partially attributed to supply constraints impacting the unit’s skin health and beauty products, according to the company. J&J is expected to provide an update on the new entity’s name and headquarters within the first half of the year.

Market Performance

• The shares fell 2.9% Tuesday before U.S. markets opened. Through Monday’s close, they rose 3.9% since the start of the year.

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• Get more details.
• Read the release.

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