NEW BRUNSWICK, N.J. - Kenvue Inc . (NYSE: NYSE:KVUE) reported second quarter earnings that met analyst expectations, while providing full-year guidance that came in slightly ahead of consensus estimates, sending shares up 4% in premarket trading Tuesday.
The consumer health company posted adjusted earnings per share of $0.32 for Q2, in line with analyst estimates. Revenue came in at $4 billion, slightly below the consensus forecast of $4.05 billion.
For the full year 2024, Kenvue expects adjusted earnings per share between $1.10 and $1.20, compared to the analyst consensus of $1.14. The company forecasts net sales growth of 1.0% to 3.0% for the year.
"We are on track to deliver the financial targets we set for 2024," said CEO Thibaut Mongon. "With the progress we have made in the first half of the year to increase productivity and free up resources, we are accelerating investment behind our global portfolio of iconic brands."
Kenvue's Q2 net sales decreased 0.3% YoY, while organic growth was 1.5%. The company saw slight volume declines in its Skin Health and Beauty and Self Care segments, partially offset by growth in Essential Health.
Gross profit margin expanded 360 basis points to 59.1%, driven by productivity gains and value realization. However, operating income margin fell to 3.9% from 17.5% last year, impacted by asset impairment charges and increased brand investment.
The company reaffirmed its full-year outlook, indicating confidence in its ability to meet financial targets despite a challenging consumer environment.