KVUE Earnings Prediction
The chart below shows how KVUE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KVUE sees a -0.67% change in stock price 10 days leading up to the earnings, and a +1.16% change 10 days following the report. On the earnings day itself, the stock moves by +1.60%. This data can give you a slight idea of what to expect for the next quarter's release.
KVUE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.90B
-0.41%
-2.53%
Gross Margin
58.53%
1.84%
-1.00%
Operating Margin
17.49%
-18.76%
-2.02%
Net Margin
9.82%
-12.24%
577.24%
EPS
0.20
-13.04%
566.67%
No Data Available
KVUE Earnings Analysis
Kenvue Inc. Corporation (KVUE.N) Earnings Conference Call
Positive
Strong Profitability Report: 1. Adjusted Earnings Growth: Kenvue reported adjusted diluted earnings per share of $0.28, demonstrating strong profitability despite a challenging market environment.
Gross Margin Improvement: 2. Gross Margin Expansion: The company achieved a 130 basis point increase in adjusted gross margin year-over-year, reaching 60.7%, reflecting effective cost management and productivity improvements.
Essential Health Growth: 3. Strong Performance in Essential Health: The Essential Health segment delivered organic growth of 4.5% in Q3, building on a solid 3.8% growth from the previous year, indicating robust demand across all categories and regions.
Self Care Segment Growth: 4. Share Gains in Self Care: Kenvue's Self Care segment saw organic sales growth of 0.7%, with Tylenol and Zyrtec achieving their ninth and thirteenth consecutive quarters of share gains, respectively, in both value and volume.
Marketing Investment Increase: 5. Increased Marketing Investment: The company is on track to invest approximately 20% more in marketing in 2024 compared to the previous year, aimed at enhancing brand visibility and consumer engagement across various channels.
Negative
Organic Sales Decline: 1. Declining Organic Sales: Kenvue reported a year-over-year organic sales growth of only 0.9%, a significant drop from the previous year's 3.6%, indicating a slowdown in revenue generation.
Skin Health Sales Decline: 2. Skin Health and Beauty Segment Struggles: The Skin Health and Beauty segment experienced a 2.7% decline in organic sales, with a notable 4.7% drop in volume, reflecting ongoing challenges in this category.
Volume Decline Trends: 3. Volume Decline Across Segments: Overall volumes decreased by 1.6% year-over-year, primarily driven by declines in the Self Care and Skin Health and Beauty segments, highlighting a concerning trend in consumer demand.
Revised Growth Projections: 4. Lowered Growth Expectations: Kenvue's 2024 growth rate is now expected to be at the low end of the previously communicated 2% to 4% range, primarily due to slower recovery in Skin Health and Beauty and weaker category dynamics.
Rising Effective Tax Rate: 5. Increased Tax Rate: The adjusted effective tax rate for Q3 was reported at 28.9%, higher than planned, which could impact net income and overall profitability moving forward.
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KVUE Earning Call Sentiment
Kenvue, Inc. (KVUE) Q3 2024 Earnings Call Transcript
KVUE.N
3.18%Positive
The earnings call reveals several challenges: slower recovery in U.S. Skin Health, operational challenges, competitive pressures, and economic factors impacting sales. Despite some positive aspects like gross margin improvement and shareholder returns, the overall sentiment is negative due to volume declines, lower organic growth, and unclear management responses in the Q&A. This, combined with the lack of strong guidance and competitive pressures, suggests a negative stock price movement in the short term.