Based in Skillman, New Jersey, Kenvue Inc. (KVUE), with a market cap of $35.1 billion, is a global consumer health company serving various segments, including self-care, skin health and beauty, and essential health products. The company is slated to announce its fiscal Q2 earnings results on Thursday, July 18.
Ahead of the event, analysts are expecting KVUE to report a profit of $0.29 per share, down 9.4% from $0.32 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. The company exceeded the consensus EPS estimate by 12% in the most recent quarter, driven by effective cost-cutting measures and strategic focus on key brands.
For fiscal 2024, analysts expect KVUE to report EPS of $1.17, down 9.3% from $1.29 in fiscal 2023.
Over the past 52 weeks, KVUE has seen a decline of 29.7%, lagging behind both the S&P 500 Index's ($SPX) 24.3% rise and the S&P 500 Cons Staples Sector SPDR's (XLP) 2.3% increase over the same period.
The dip of 5.8% on Feb. 8 was likely influenced by disappointing Q4 sales and a lower full-year profit forecast, mainly due to sluggish demand in China and slower growth in their skin health and beauty products segment. Conversely, the 5.2% surge on May 7 followed a strong Q1 earnings report that exceeded profit expectations, coupled with Kenvue's announcement to cut 4% jobs amid investments to grow its key brands such as Tylenol and Band-Aid.
Analysts' consensus rating on Kenvue stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, five recommend a "Strong Buy," one suggests a "Moderate Buy," seven give a "Hold" rating, and one advises a "Strong Sell." This consensus is slightly less bullish than three months ago, with no "Strong Sell” rating on the stock.
The average analyst price target for KVUE is $22.83, indicating a modest potential upside of 24.7% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
