Kenvue Q3 sales miss estimates

Overview

• Kenvue Q3 net sales fell 3.5%, missing analyst expectations

• Adjusted EPS for Q3 remained at $0.28, unchanged from prior year

• Company affirms FY 2025 outlook, despite sales decline

Outlook

• Company affirms full-year 2025 outlook with net sales down low-single-digits

• Adjusted diluted EPS for 2025 expected between $1.00 and $1.05

• Adjusted operating income margin expected to decline year-over-year

Result Drivers

• VOLUME DECLINE - 4.0% volume decrease driven by shipment timing changes in China, trade inventory reductions, and global category slowdown

• GROSS MARGIN EXPANSION - Gross profit margin increased due to productivity gains from supply chain optimization

• FOREIGN CURRENCY BENEFIT - 1.0% foreign currency benefit partially offset sales decline

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy."

• Wall Street's median 12-month price target for Kenvue Inc is $19.00, about 24.4% above its October 31 closing price of $14.37

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBwb78S2ga

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