Johnson & Johnson on Tuesday forecast annual profit above Wall Street estimates, as strong demand for its drugs such as cancer treatment Darzalex is expected to ease pressure from inflation and a strong dollar.

Fourth quarter sales declined 4.4% to $23.7 billion on unfavorable foreign exchange and reduced COVID-19 vaccine sales. This was below the Wall Street consensus of $23.9B.

Pharmaceutical sales came in at $13.16 billion for the fourth quarter, above analysts' average estimates of $13.14 billion.

J&J said it was expecting to earn between $10.45 and $10.65 per share on an adjusted basis for 2023, above analysts' estimates of $10.35 per share profit at the midpoint.

As we look ahead to 2023, Johnson & Johnson is well-positioned to drive near-term growth, while also investing strategically to deliver long-term value."

The healthcare conglomerate also beat estimates for fourth-quarter profit as increased sales of pharmaceutical products helped it weather a hit from a stronger dollar.

Looking ahead, the company sees FY 2023 EPS growth of 3.5%, or $10.50. This is above the current Wall Street consensus of $10.33. The company sees 2023 adjusted operational sales growth of 4%, excluding COVID-19 vaccine sales.

Excluding items, J&J earned $2.35 per share, above analysts' average estimates of $2.23 per share, according to IBES data from Refinitiv.