Core Viewpoint - Kenvue (NYSE:KVUE) has shown strong market performance following the release of its second-quarter results, with a 14% increase in stock price, indicating positive investor sentiment towards the company's financial performance and outlook [1][5]. Financial Performance - Kenvue reported revenue of $4 billion, surpassing analyst estimates of $3.95 billion, and earnings per share (EPS) of 32 cents, exceeding the consensus estimate of 27 cents [2][3]. - Despite a 0.3% year-over-year decline in revenue, the results were well-received as they exceeded expectations, reflecting the effectiveness of the company's efficiency initiatives [3][5]. Market Reaction - The reaffirmation of revenue growth and EPS outlook for the upcoming year has positively influenced investor confidence, leading to a re-rating of Kenvue's stock [5][6]. - Following the earnings report, Kenvue's stock is trading at approximately 16 times forward earnings, which is considered a reasonable multiple for a consumer health company demonstrating positive operational changes [7]. Company Overview - Kenvue is recognized as a leading consumer health company with well-known brands such as Benadryl, Tylenol, and Motrin, providing a solid foundation for investor evaluation after one year of quarterly earnings reports [6]. - The company's focus on profitability and operational efficiency is a key aspect that investors are currently valuing [6][7].

Core Insights - Kenvue reported $4 billion in revenue for the quarter ended June 2024, reflecting a year-over-year decline of 0.3% and an EPS of $0.32, unchanged from the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $3.93 billion by 1.75%, while the EPS surpassed the consensus estimate of $0.28 by 14.29% [1] Revenue Performance - Net Sales in Self Care reached $1.64 billion, matching the average estimate from three analysts [3] - Net Sales in Essential Health amounted to $1.26 billion, slightly above the average estimate of $1.23 billion from three analysts [4] - Net Sales in Skin Health and Beauty totaled $1.10 billion, slightly below the average estimate of $1.11 billion from three analysts [5] Adjusted Operating Income - Adjusted Operating Income for Self Care was $534 million, below the average estimate of $558.98 million from two analysts [6] - Adjusted Operating Income for Essential Health was $359 million, significantly above the average estimate of $154.69 million from two analysts [7] - Adjusted Operating Income for Skin Health and Beauty was $165 million, below the average estimate of $195.87 million from two analysts [8] Stock Performance - Kenvue shares have returned -0.3% over the past month, compared to a -6.7% change in the Zacks S&P 500 composite [8] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [8]

Kenvue (KVUE) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this consumer health company would post earnings of $0.25 per share when it actually produced earnings of $0.28, delivering a surprise of 12%. Over the last four quarters, the com ...

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skhoward Introduction Consumer staples stocks and most other value stocks have performed quite well recently. However, shares of Kenvue Inc. (NYSE:KVUE), the former consumer health division of Johnson & Johnson (JNJ), don't seem to be getting any positive attention from Mr. Market. Although the stock is up 5% from its 52-week low of $17.7, it's worth noting that KVUE stock started trading as a separate company at nearly $27 last May. I have been following the company since the split-off became concrete, foc ...

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Estimate Revisions Trend Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) ...

YCharts % Loss/Gain BKH is $2.42 over-priced, SWK is $24.34 overpriced, and FRT needs to lose $34.59 in price to join the ideal eight. 42% Irina Nedikova/iStock via Getty Images As a supplement to this article, please note that The Motley Fool, which sourced this latest list, and SureDividend both update their lists periodically. any) of these Kings show "safe" dividends (with sufficient cash reserves to cover their payout), click on the last bullet point at the top 0 the article after July 18. Estimated di ...

Overview - Kenvue Inc (KVUE) has a current dividend yield of 4.3% and potential for future growth as market conditions improve [2][11] - KVUE went public during challenging economic conditions, including high inflation and interest rates, limiting its ability to establish a strong market presence [2] Financial Performance - KVUE reported Q1 earnings with revenue of $3.9 billion, reflecting a year-over-year growth of 1.1% and earnings per share of $0.28 [3] - Organic growth across KVUE's segments was as follows: Self Care at 4.2%, Skin Health & Beauty at -4.5%, and Essential Health at 4.9% [4][10] - Free cash flow is currently at $2.7 billion, with cash and cash equivalents at $1.15 billion, while long-term debt is approximately $7 billion [5] Segment Analysis - The Self Care segment, which includes products like Tylenol, saw organic growth of 4.2%, heavily relying on brand reputation [16] - The Skin Health segment experienced a decline in organic sales of 4.5%, attributed to lower volumes, prompting management to enhance store presence and dermatologist engagement [10] - Essential Health's growth was driven by oral care products and the new Aveeno product line aimed at children [4] Dividend and Valuation - The current dividend payout ratio is around 65%, with management prioritizing dividend sustainability despite high ratios [11] - KVUE trades at a price-to-earnings ratio of approximately 15x, below the sector median of 17.5x, indicating potential undervaluation [11] - Wall Street's average price target for KVUE is $22.54 per share, suggesting a potential upside of over 22% from current levels [11] Market Challenges - KVUE's reputation is still closely tied to Johnson & Johnson (JNJ), making it vulnerable to ongoing litigations affecting JNJ [12][14] - Consumer spending patterns are under pressure due to high inflation and interest rates, leading to increased competition from generic brands [12][13] - KVUE's reliance on a few key brands for sales creates a need for continuous product innovation to maintain market share [13][15] Future Outlook - Net sales are projected to grow modestly between 1% to 3% for the fiscal year, with adjusted diluted earnings per share estimated between $1.10 and $1.20 [20] - Management is implementing cost-saving measures, including a 4% workforce reduction, expected to yield $350 million in savings [20] - An estimated fair price value for KVUE is calculated at $19.19 per share, suggesting it may already be near fair value [21]

It's a great time to be looking at healthcare stocks to buy now. According to research from BlackRock, U.S. healthcare stocks have outperformed the overall stock market by an average of 10% over the past seven recessions. Given high interest rates, inflation and the possibility of an economic slowdown in coming months, it could be a great time for defensive investment categories such as healthcare. More broadly, the sector should enjoy several positive factors in coming years. For one, there is demographics ...

As filed with the Securities and Exchange Commission on May 13, 2024. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Kenvue Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) (Primary Standard Industrial Classification Code Number) Delaware 2844 88-1032011 (I.R.S. Employer Identification Number) 199 Grandview Road Skillman, NJ 08558 (908) 874-1200 ...