Kenvue beats Q4 sales expectations

Reuters
Feb 18
Kenvue beats Q4 sales expectations

Overview

  • Consumer health firm's Q4 net sales rose 3.2%, beating analyst expectations

  • Adjusted diluted EPS for Q4 was $0.27, slightly up from prior year

  • Company in process of acquisition by Kimberly-Clark, expected to close in H2 2026

Outlook

  • Company will not provide forward-looking guidance due to pending Kimberly-Clark transaction

Result Drivers

  • FOREIGN CURRENCY BENEFIT - Q4 net sales increase of 3.2% was partly due to a 2.1% foreign currency benefit

  • VALUE REALIZATION - Organic sales growth driven by 2.3% favorable value realization, offset by 1.1% volume decrease

  • SUPPLY CHAIN OPTIMIZATION - Adjusted gross profit margin improved due to savings from global supply chain optimization

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Beat

$3.78 bln

$3.68 bln (10 Analysts)

Q4 Adjusted EPS

$0.27

Q4 EPS

$0.17

Q4 Net Income

$330 mln

Q4 Gross Profit

$2.14 bln

Q4 Operating Income

$535 mln

Q4 Pretax Profit

$427 mln

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 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 $18.00, about 2.2% below its February 17 closing price of $18.41

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw7wtt40a

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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.)

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