KVUE Reports Solid Q1 2024 Earnings and Plans Cost Cuts

May 18, 2024

KVUE reported a good quarter with a top and bottom line beat. Kenvue maintained top line revenue growth guidance of +1% to +3% taking into account a 1% currency headwind. Consensus revenue growth for F2024 is +1.2%. A big positive is that the company is going to do a restructuring and cut the global workforce by 4% which will result in $350MM savings. KVUE will reinvest this savings in promotion to reaccelerate growth (this seems almost like a direct response to the Bernstein report that KVUE doesn’t have enough excess cash to invest in its business).  KVUE still trades at a large discount to all its peers. I think it’s worth at least $25/share.