NYSE$KVUE

Kenvue Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Kenvue's Q3 2024 earnings were reported, revealing a slight decrease in net sales but growth in organic sales, driven by value realization. Increased marketing investment, fueled by gross profit margin expansion and savings, impacted EPS, while the company reaffirms its adjusted EPS outlook for 2024.

Kenvue reported a slight decrease in net sales of 0.4% to $3.9 billion, but organic growth increased by 0.9%. The company's diluted EPS was $0.20, and adjusted diluted EPS was $0.28. They are reaffirming their outlook for Adjusted diluted earnings per share in the range of $1.10-$1.20.

  • Net sales decreased 0.4% to $3.9 billion; organic growth was 0.9%.
  • Gross profit margin expanded, and savings fueled increased marketing investment.
  • Diluted EPS was $0.20; adjusted diluted EPS was $0.28.
  • The company expects Net sales growth and Organic growth toward the low end of its outlook of 1.0%-3.0% and 2.0%-4.0%, respectively.

Headline financials

Total Revenue

$3.91B

Previous: $3.82B+2.5%
EPS

$0.20

Previous: $0.31-35.5%
Gross Profit Margin

58.5%

No prior period
Adjusted Gross Margin

60.7%

No prior period
Operating Margin

16.8%

No prior period
Adjusted Operating Margin

22.1%

No prior period
Effective Tax Rate

33.6%

No prior period
Adjusted Tax Rate

28.9%

No prior period
Capital Expenditures

-$302M

Previous: -$246M-22.8%
Free Cash Flow

$81M

Previous: $192M-57.8%
Net Income

$383M

Previous: $438M-12.6%
Operating Income

$654M

Previous: $710M-7.9%
Gross Profit

$2.28B

Previous: $2.25B+1.4%
Cash & Equivalents

$1.06B

Previous: $1.06B-0.5%
Total Assets

$26.9B

Previous: $27.1B-0.6%
R&D Expense

$97M

No prior period
Stock-Based Comp

$58M

Previous: $2M+2800.0%

Revenue & EPS history

Kenvue · Revenue · Quarterly

$3.91B

Q3 2024+2.5%vs Q3 2023
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Kenvue · $3.92B total across 3 segments · Q3 2023

  • Self Care
    $1.61B+6.4%
  • Essential Health
    $1.18B+3.0%
  • Skin Health & Beauty
    $1.12B-0.4%

Forward guidance

For 2024, assuming an approximately 1% currency headwind, the Company expects Net sales growth and Organic growth toward the low end of its outlook of 1.0%-3.0% and 2.0%-4.0%, respectively. The Company reaffirms its outlook for Adjusted diluted earnings per share in the range of $1.10-$1.20, which continues to reflect strong productivity and efficiency gains that are funding sustained incremental investment in brand activation.

Tailwinds

  • Strong productivity
  • Efficiency gains
  • Sustained incremental investment in brand activation.
  • Adjusted diluted earnings per share in the range of $1.10-$1.20
  • Savings from Our Vue Forward

Headwinds

  • Approximately 1% currency headwind
  • Net sales growth toward the low end of its outlook of 1.0%-3.0%
  • Organic growth toward the low end of its outlook of 2.0%-4.0%
  • Increased brand investment
  • Increased tax rate

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 13 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+2.0%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+2.8%

Avg return

30 days after

57%

8 / 14 earnings

Positive

+15.7%

Q3 2025

Best reaction

-7.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-1.2%+0.2%
Q4 2025+0.9%+2.9%-5.5%
Q3 2025+15.7%+17.5%+18.1%
Q2 2025+1.5%+2.1%-13.2%
Q1 2025+4.3%+2.4%-6.0%
Q4 2024-4.5%+0.8%+12.9%
Q3 2024+5.2%+5.1%+1.5%
Q2 2024+13.4%+15.6%+23.7%
Q1 2024+7.2%+7.7%-2.4%
Q4 2022-0.2%+3.1%+12.9%
Q4 2023-5.8%-6.2%-2.4%
Q3 2023-7.7%-5.7%+2.6%
Q2 2023-4.0%+0.5%-8.5%
Q1 2023-0.5%-0.8%+4.5%
Q3 2022
Q2 2022
Q1 2022
Q4 2021

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