Recently, Kenvue (KVUE, Financial) Inc has witnessed a notable increase in bullish option activity. The market saw 9,358 call options being traded, surpassing expectations at 1.1 times the anticipated level. This heightened interest pushed the implied volatility up by over 2 percentage points, reaching 26.11%. The most popular options include the September 25th $24 calls and the November 25th $23 calls, with these two strikes accounting for nearly 6,600 contracts in total volume.
The current Put/Call Ratio stands at a low 0.07, reflecting strong investor optimism. As shareholders look forward to the earnings report anticipated on August 5th, market participants are closely monitoring these developments, suggesting a strong belief in potential positive performance for KVUE.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Kenvue Inc (KVUE, Financial) is $24.54 with a high estimate of $29.00 and a low estimate of $22.00. The average target implies an upside of 13.45% from the current price of $21.63. More detailed estimate data can be found on the Kenvue Inc (KVUE) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Kenvue Inc's (KVUE, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
KVUE Key Business Developments
Release Date: May 08, 2025
- Organic Sales Decline: 1.2% decrease versus Q1 last year.
- Self-Care Organic Sales Growth: 0.3% increase, driven by allergy, digestive health, and smoking cessation franchises.
- Skin Health and Beauty Organic Sales Decline: 4.8% decrease due to destocking in China, soft sun season in Latin America, and strategic price investment in the US.
- Essential Health Organic Sales: Flat performance with growth in wound care offset by declines in women's health and oral care.
- Adjusted Gross Margin: 60%, down 20 basis points from last year.
- Adjusted Operating Margin: 19.8%, a contraction of 220 basis points versus last year.
- Adjusted Net Income: $465 million.
- Adjusted Diluted EPS: $0.24, including a $0.02 headwind from currency.
- Revenue Growth Outlook for 2025: 2% to 4% organic sales growth expected.
- Tariff Impact: Estimated $150 million impact for 2025 due to tariffs and retaliatory measures.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kenvue Inc (KVUE, Financial) maintained its organic sales growth outlook for 2025, indicating confidence in its strategic plans.
- The company demonstrated strong execution of its plans in Q1, with consumption outpacing organic sales growth across its three segments.
- Kenvue Inc (KVUE) is leveraging its 'five extraordinary powers' to enhance brand potential, including innovation and impactful marketing campaigns.
- The company completed its transition services agreement program, finalizing the exit of over 2,300 TSAs without business disruption.
- Kenvue Inc (KVUE) is seeing positive signs in consumption growth and market share gains, particularly in self-care and skin health segments.
Negative Points
- Organic sales declined by 1.2% in Q1 compared to the previous year, impacted by destocking in China and strategic price investments in the US.
- The skin health and beauty segment saw a 4.8% decline in organic sales due to destocking in China and a soft sun season in Latin America.
- Adjusted operating margin contracted by 220 basis points to 19.8% due to increased brand support and strategic investments.
- The company faces a $150 million impact from tariffs in 2025, affecting costs despite mitigation efforts.
- Kenvue Inc (KVUE) anticipates continued pressure in Q2 from destocking and strategic price investments, with growth expected to accelerate in the second half of the year.
