Earnings Preview: Anticipating Kenvue’s Upcoming Results

Kenvue Inc.: Company Overview and Recent Developments

Kenvue Inc. (KVUE), boasting a market capitalization of $32.1 billion, operates as a leading global consumer health company. Specializing in over-the-counter medications, personal care, and skincare products, Kenvue is headquartered in Summit, New Jersey. The company became independent from Johnson & Johnson (JNJ) in 2023 and now manages a collection of well-established brands that hold strong positions in daily health markets.

Upcoming Earnings and Analyst Expectations

The company is set to release its fourth-quarter financial results soon. Analysts are forecasting an adjusted earnings per share (EPS) of $0.22, representing a 15.4% decrease compared to the $0.26 reported in the same quarter last year. Despite this anticipated decline, Kenvue has consistently matched or exceeded Wall Street’s earnings expectations for the past four quarters.

Related News from Barchart

Future Earnings Outlook

Looking ahead to fiscal year 2025, Kenvue is projected to post an adjusted EPS of $1.03, which would be a 9.7% drop from the $1.14 reported in 2024. However, forecasts for 2026 suggest a recovery, with earnings expected to climb 5.8% year-over-year to $1.09 per share.

Source: www.barchart.com

Stock Performance Comparison

Over the past year, KVUE shares have declined by 19.5%. This performance lags behind the Consumer Staples Select Sector SPDR Fund (XLP), which saw a 1.4% decrease, and the S&P 500 Index ($SPX), which gained 17% during the same period.

Source: www.barchart.com

Acquisition News

On November 3, Kenvue’s stock jumped 12.3% following news that Kimberly-Clark Corporation (KMB) had reached an agreement to acquire Kenvue in a transaction valued at roughly $48.7 billion. This merger will unite two major players in the consumer sector, expanding their combined portfolio of health and personal care products worldwide.

Analyst Ratings and Price Targets

Market experts remain cautious about Kenvue’s future. The stock currently holds a consensus rating of “Hold,” a downgrade from the “Moderate Buy” rating it received three months ago. Among the 12 analysts covering KVUE, two recommend a “Strong Buy,” while ten suggest holding the stock. The average price target stands at $19, indicating a potential upside of 11.8% from current levels.