Company Reports

Kenvue delivered 3% revenue growth (0.9% from price/mix and 0.7% from volume) and 7% adjusted EPS growth during the second quarter.

Kenvue delivered 4.5% and 32.5% growth in revenue and adjusted EPS, respectively, during first quarter. Both figures came in higher than FactSet consensus.

Kenvue is the world’s largest pure-play consumer health company by revenue, generating over $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products.

Kenvue reported 3% revenue growth in the fourth quarter, or 1% organic, driven by 2% price/mix and a 1% volume decline, and 3% adjusted earnings per share growth. Both figures are ahead of FactSet consensus estimates.

Kenvue announced that it has agreed to be acquired by Kimberly-Clark at an enterprise value of roughly $48.7 billion. Kenvue shares are up over 15% on the news Nov. 3.

Kenvue is the world’s largest pure-play consumer health company by revenue, generating over $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products.

A new lawsuit against Johnson & Johnson and Kenvue claims that Johnson's talc-based baby powder caused ovarian cancer and other diseases. Kenvue retains talc-related litigation liability outside of the US and Canada. Kenvue shares sank over 13%.

Kenvue is the world’s largest pure-play consumer health company by revenue, generating over $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue, with the freedom to allocate capital and invest as a stand-alone entity, to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products.

The US Department of Health and Human Services released a statement on Sept. 22 on link between acetaminophen use during pregnancy and autism.

Kenvue stock was trading down over 5% on Sept. 22 following multiple sources reporting that US President Donald Trump and his team are expected to link autism and the use of acetaminophen (the main ingredient in Kenvue's Tylenol) in pregnant women.

The Wall Street Journal reported the Department of Health and Human Services is expected to release Secretary Robert F. Kennedy's report suggesting a potential link between autism and acetaminophen, a main ingredient in Tylenol. Shares in Kenvue, the maker of Tylenol, tumbled over 10% on the news.

Kenvue reported second-quarter results with sales and adjusted EPS down 4% and 9% year over year, respectively. Both figures were in line with preliminary results that the firm provided in July when it announced the transition to interim CEO Kirk Perry.

Kenvue announced Chief Executive Thibaut Mongon has departed the firm, and Kirk Perry, one of its directors, will serve as the interim CEO while the firm finds a permanent successor. The firm also noted that it is advancing its strategic review process and is evaluating potential new actions.

Kenvue is the world’s largest pure-play consumer health company by revenue, generating $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue, with the freedom to allocate capital and invest as a stand-alone entity, to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products, specifically in digital consumer health. Recent examples include the Nicorette QuickMist SmartTrack spray and Zyrtec AllergyCast app.

Wide-moat Kenvue's shares declined roughly 6% after the firm hinted at persistent market challenges at an investor conference. Management pointed to two dynamics—inventory destocking and weak seasonality—that are likely to weigh down next quarter results, and we think June 3’s share movement is baking in some near-term pessimism as well as a cautious outlook for the remainder of the year. However, our long-term outlook on the name remains unchanged, and we reiterate our fair value estimate of $24.50 per share. We think June 3’s market reaction is an overreaction from short-term investors as well as some cyclical pressure and believe Kenvue is still well positioned in the industry with its portfolio of category-leading brands.

Wide-moat Kenvue reported solid first-quarter earnings to start the year on good footing. Total revenue of $3.7 billion was down 3.9% year over year but outperformed our expectations by about $0.1 billion. Price and mix were down during the three months by 0.3% and volume was down 0.9%. We reiterate our fair value estimate of $24.50 per share, and shares look about fairly valued.

Kenvue is the world’s largest pure-play consumer health company by revenue, generating $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue, with the freedom to allocate capital and invest as a stand-alone entity, to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products, specifically in digital consumer health. Recent examples include the Nicorette QuickMist SmartTrack spray and Zyrtec AllergyCast app.

Wide-moat Kenvue reported mixed fourth-quarter results, ending the year on a soft note. Total sales of $3.7 billion came in roughly flat year over year and below our $3.9 billion forecast, but earnings per share of $0.26 ended up a touch above our expectation. Two factors behind the revenue underperformance were a weaker-than-expected cough and cold season, affecting self care, and a disruption in Kenvue’s China distribution network, affecting essential health and skin health and beauty. Self care and skin health and beauty both still delivered roughly 3% organic growth, but essential health was down about 1%. Management said organic growth for the firm, which was about 2% during the quarter, would have been around 4%—close to our original estimate—excluding these impacts. 2025 guidance, which partially bakes in these impacts as well as tough foreign-exchange headwinds, is for 3% organic sales growth and 1% EPS growth, both at the midpoint, and is slightly shy of our original assumptions. After updating our model, we've lowered our fair value estimate to $24.50 per share from $26. Still, we see some near-term headwinds as transitory and not severely affecting our favorable long-term view.

Kenvue is the world’s largest pure-play consumer health company by revenue, generating $15 billion in annual sales. The former consumer segment of Johnson & Johnson spun off and went public in May 2023. We expect Kenvue, with the freedom to allocate capital and invest as a stand-alone entity, to focus on its 15 priority brands (including Tylenol, Nicorette, Listerine, and Zyrtec) to drive future growth. We forecast the firm to spend roughly 3% of sales on research and development, on par with some of its wide-moat competitors, to launch innovative products, specifically in digital consumer health. Recent examples include the Nicorette QuickMist SmartTrack spray and Zyrtec AllergyCast app.

Wide-moat Kenvue reported tepid third-quarter earnings with results slightly below our expectations. Total sales of $3.9 billion were down 0.4% year over year, while we expected about 1% growth. On organic basis, revenue was up 2.5% and down 1.6% from price/mix and volume, respectively. Weakening pricing power driven by cooling inflation and volume loss in key categories make this quarter’s organic growth number the weakest in the year so far. Performance was mixed regionally as Europe, which grew double-digits, outpaced weak US and Asia markets, which were both down about 2%. After digesting the results, we've trimmed some of our near-term assumptions but changes were immaterial to our valuation and we maintain our fair value estimate of $26 per share.