J&J sales grow, but strong dollar tugs at expectations

Johnson & Johnson topped third-quarter expectations thanks to pharmaceutical sales growth, but a strong dollar made the health care giant tread cautiously again with its outlook.

J&J on Tuesday narrowed its 2022 forecast and stuck to the midpoint of its previous range after lowering expectations earlier this year due to the impact of currency exchanges.

J&J brings in nearly half of its sales from outside the United States. A strong U.S. dollar — now worth more than a euro for the first time in 20 years — can affect sales for companies that do a lot of international business.

They have to convert those sales into dollars when they report earnings. The stronger dollar decreases the value of those sales. It also gives foreign products a price edge in the United States.