What to expect from Kenvue’s Q2 2024 earnings report

Kenvue Inc. (KVUE), headquartered in Skillman, New Jersey, with a market capitalization of $35.1 billion, is a global consumer company with businesses spanning multiple segments, including self-care, skin and beauty, and essential health products. The company is scheduled to report fiscal second-quarter financial results on Thursday, July 18.

Ahead of the event, analysts expect KVUE to report earnings of $0.29 per share, down 9.4% from $0.32 per share in the year-ago quarter. The company has topped Wall Street estimates for net earnings in each of its last four quarterly reports. The company topped consensus EPS estimates by 12% in the latest quarter, aided by effective cost-cutting measures and a strategic focus on core brands.

Analysts forecast that KVUE will post earnings of $1.17 per share in fiscal 2024, down 9.3% from earnings of $1.29 in fiscal 2023.

The KVUE index is down 29.7% over the past 52 weeks, lagging the S&P 500 Index ($SPX)’s 24.3% gain and the S&P 500 Cons Staples Sector SPDR Index (XLP)’s 2.3% gain during the same period.

The 5.8% decline on Feb. 8 was likely due to disappointing fourth-quarter sales and a lower full-year profit forecast, largely due to weak demand in China and slower growth in the skin and beauty segment. The 5.2% gain on May 7 followed a strong first-quarter earnings report that beat expectations, coupled with Kenvue’s announcement to lay off 4% of its workforce as it invests in growing key brands like Tylenol and Band-Aid.

The analyst consensus on Kenvue stock is cautiously bullish, with an overall rating of “Moderate Buy.” Of the 14 analysts covering the stock, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” seven rate it a “Hold,” and one recommends a “Strong Sell.” This consensus is slightly less bullish than it was three months ago, with no “Strong Sell” rating for the stock.

The average analyst price target for KVUE shares is $22.83, indicating a modest potential upside of 24.7% from current levels.

On the date of publication, Sohini Mondal did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For further information, please refer to Barchart’s Disclosure Policy here.