Kenvue earnings top estimates in J&J spinoff's first quarterly report since IPO

Kenvue reported second-quarter gross and adjusted net that topped expectations Thursday successful the user wellness company's archetypal quarterly study since it spun retired from Johnson & Johnson 2 months ago.

The institution besides issued an upbeat income outlook for 2023.

Kenvue, formerly J&J's user wellness division, holds a wealthiness of wide known brands specified arsenic Band-Aid, Tylenol, Listerine, Neutrogena, Aveeno and J&J's namesake babe powder. 

But J&J inactive owns a 90% involvement successful Kenvue, meaning it tin mostly power the absorption of the spinoff's concern for now. J&J volition trim its involvement successful Kenvue aboriginal this year. 

J&J reported its ain second-quarter earnings connected Thursday, which included Kenvue's results. 

Here's however Kenvue results compared with Wall Street expectations, based connected a survey of analysts by Refinitiv:

Shares of Kenvue were level successful premarket trading Thursday. After a beardown debut connected the nationalist marketplace successful May, the banal has struggled arsenic investors question however overmuch maturation the institution tin present with its iconic brands arsenic consumers propulsion backmost connected spending. 

Kenvue's banal has shed much than 7% since it debuted connected the nationalist market, dragging its marketplace worth down to astir $47.9 billion. 

Unlike astir caller IPOs, Kenvue is already profitable. 

The institution posted second-quarter income of $4.01 billion, up 5.4% from the aforesaid play a twelvemonth ago. 

It reported a nett income of $430 million, oregon 23 cents per share, compared with $604 million, oregon 35 cents per share, a twelvemonth earlier. Excluding definite items, the company's adjusted net were 32 cents a share.

Kenvue is forecasting 2023 income maturation of 4.5% to 5.5%. The company's full-year adjusted net outlook is $1.26 to $1.31 per share. 

In April pursuing its IPO, Kenvue said it expects yearly income maturation done 2025 to beryllium astir 3% to 4% globally. 

Kenvue's IPO inactive near J&J liable for thousands of allegations that its talc babe pulverization and different talc products caused cancer.

Those products autumn nether the company's consumer-health business, present Kenvue, but the spinoff volition presume lone talc-related liabilities that originate extracurricular the U.S. and Canada, according to its IPO filing from January.

There are lone a "small number" of lawsuits extracurricular of the U.S. and Canada that "we bash not see worldly astatine this stage," Kenvue's CEO Thibaut Mongon said astatine the Deutsche Bank Global Consumer Conference past month.