Kenvue Inc's shares fell 1.7% in pre-market trading after the company posted in-line third-quarter earnings but tightened its full-year guidance after a slow start to the flu and cold season.
Thibaut Mongon, chief executive officer said: "We maintained the base of our guidance and tightened the range based on a slow start of the cough, cold & flu season that limits our ability to reach the high end of the guidance we communicated previously - but we are still well within the guidance.”
The company, the former consumer health operations of Johnson & Johnson (NYSE:JNJ) posted net income of $438 million, or 23 cents a share, for the quarter, down from $586 million, or 34 cents a share, a year ago.
Adjusted EPS totalled $0.31, while sales rose to $3.92 billion from $3.79 billion a year ago.
Organic growth was fueled by Self Care where successful brand activation and innovation drove volume growth and strength across all product categories, despite a slow start to the cold cough and flu season.
In Skin Health & Beauty, a strong finish to the sun season and strength across Latin America and Europe, Middle East, and Africa were offset by the impact of 2022 portfolio rationalization in the US and market softness in China.
Kenvue now expects the strong dollar to present a headwind to full-year sales of about 1 to 2 percentage points, up from one percentage point previously expected.
It expects adjusted EPS between $1.26 to $1.28.