On Tuesday, Johnson & Johnson posted better-than-expected Q3 earnings on strong demand for its cancer drug Darzalex. However, the company said it may still cut some jobs as it contends with inflationary pressure and challenges created by the strong dollar.

The US healthcare conglomerate is looking at right-sizing itself, particularly as it moves from being a three-segment business to a two-segment business through the spinoff of its consumer unit. The company said that it was not immune to the effects of inflation on its business and the impact of a strong dollar.

Johnson & Johnson (NYSE:JNJ) shares were marginally down in early trading at USD 166.29, reversing their premarket gains. The share move was largely due to macroeconomic and currency concerns, which are not unique to J&J. The company expects some inflationary pressures to ease next year. However, it warned higher costs of inventory manufactured in 2022 could weigh on 2023 profit.

Total sales surged 1.9 per cent to USD 23.79 billion in the third quarter, topping estimates of USD 23.34 billion. J&J earned USD 2.55 per share, excluding items, beating Wall Street estimates by 8 cents.

Reportedly, sales of the cancer drug Darzalex rose nearly 30 per cent to USD 2.05 billion in the quarter. Also, the medical devices unit reported a 2.1 per cent rise in sales to USD 6.78 billion on demand for contact lenses and wound-closure products.