Kenvue Q3 sales slightly beat expectations on self care segment growth
Overview
Consumer health products maker's fiscal Q3 sales rose 3.2%, slightly beating analyst expectations
Adjusted diluted EPS for fiscal Q3 rose 4% to $0.29
Company cites margin expansion and productivity gains as drivers of quarterly results
Outlook
Kenvue will not provide forward-looking guidance due to the pending Kimberly-Clark transaction
Result Drivers
SELF CARE SEGMENT - Co said Self Care segment drove growth, with net sales up 5.9% on strong demand for smoking cessation and pain care products, innovation, and commercial execution
PRODUCTIVITY INITIATIVES - Co attributed margin expansion to productivity gains from global supply chain optimization, U.S. tariff refunds, and favorable value realization, partially offset by inflation and unfavorable transactional FX
RESTRUCTURING INITIATIVE - Co said cost optimization actions, including the 2026 Restructuring Initiative and Vue Forward, contributed to improved operating income margin, partially offset by increased brand support
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $3.89 bln | $3.86 bln (10 Analysts) |
Q3 Adjusted EPS | $0.29 | ||
Q3 EPS | $0.22 | ||
Q3 Net Income | $430 mln | ||
Q3 Gross Profit | $2.31 bln | ||
Q3 Operating Income | $706 mln | ||
Q3 Pretax Profit | $609 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 13 "hold" and no "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 2.9% below its October 29 closing price of $19.56
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)