Tylenol maker Kenvue hails efficiency gains as activist Starboard watches on
Published: 12:22 07 Nov 2024 EST
Kenvue Inc (NYSE:KVUE), the maker of Listerine, Tylenol, Aveeno and Band-Aid, reported slightly lower sales than expected but earnings were just above Wall Street estimates.
The company has been in a more intense spotlight coming into these results after reports emerged that activist investor Starboard Value has taken a stake and is eyeing changes.
Third-quarter sales of $3.89 billion fell 0.4% versus a year earlier, but were 0.9% higher on an organic basis. The Street consensus forecast was for $3.93 billion of revenues.
Adjusted earnings per share came in at $0.28 to beat analysts' $0.27 EPS forecast, per Reuters.
The consumer health products giant, which was spun out of Johnson & Johnson (NYSE:JNJ) in August 2023, said it still expects full-year adjusted EPS of between $1.10 and $1.20, with the current consensus at $1.14, despite expecting net sales growth toward the low end of 1.0-3.0% guidance.
CEO Thibaut Mongon highlighted "strong productivity" and "efficiency benefits" from an ongoing plan, with the extra cash being reinvesting into its main brands.
"This reinvestment is enabling us to continue to drive share gains in Self Care, deliver broad-based growth across the Essential Health categories, and build the right foundation in Skin Health & Beauty, where we are seeing early signs of recovery."
Kenvue shares, which were spun out of J&J last year at $22 a share before sinking to below $18 this summer, were up over 3.5% on Thursday to $23.30.
