Kenvue beats first-quarter estimates amid pending acquisition by Kimberly-Clark
07/05/2026 12:13
May 7 (Reuters) - Tylenol-maker Kenvue KVUE.N on Thursday beat Wall Street estimates for first-quarter revenue and profit helped by strong sales in its skin health and beauty brands. The consumer health company, currently in the midst of a $40 billion buyout by Kimberly-Clark, expects the deal to close in the second half of the year. Here are the results: Kenvue reported first-quarter adjusted earnings per share of 32 cents per share; analysts on an average expected 26 cents, according to data complied by LSEG. The company reported quarterly net sales of $3.91 billion, an increase of 4.5% from a year earlier and above analysts' estimates of $3.84 billion. Net sales at its skin health and beauty unit that includes brands like Neutrogena and Aveeno rose 8.4% to $1.06 billion for the three months ended March 29, helped by strong increase in sales worldwide. "We remain confident ... as we accelerate our organization and business transformation through our new strategic plans and work toward completing our value-creating combination with Kimberly-Clark in the second half of this year,” said CEO Kirk Perry. The company said its restructuring plan is expected to result in pre-tax restructuring expenses and other charges, totaling about $250 million this year. "Kenvue's time as a public company has been tumultuous … Fundamentals still matter but in the near term will take a backseat to the deal and ongoing litigation headlines which we believe will take time to resolve," said RBC Capital Markets analyst Nik Modi. He called the results bullish for Kimberly-Clark as "Kenvue's fundamentals seem to be stabilizing." (Reporting by Sneha S K in Bengaluru; Editing by Joyjeet Das) ((Sneha.SK@thomsonreuters.com;))