How did KVUE's actual earnings deviate from forecasts in 2024?

Kenvue's actual earnings deviated from forecasts in several key areas in 2024: 1. **Revenue and Net Income**: - Kenvue's net sales for Q3 2024 were $3.9 billion, which was slightly below the analyst estimate of $3,931.57 million. - The company's diluted EPS for Q3 2024 was $0.20, missing the analyst estimate of $0.25. - In Q1 2024, Kenvue's revenue was $3.9 billion, slightly surpassing the estimated $3.789 billion. - The net income reported for Q1 2024 was $296 million, falling short of the estimated $488.67 million. 2. **Organic Growth and Profit Margins**: - Despite the slight revenue shortfall, Kenvue achieved organic growth of 0.9%. - Gross Profit Margin expanded by 100 basis points to 58.5%, reflecting productivity gains and value realization efforts. - However, Operating Income Margin declined to 16.8% from 18.1% in the prior year, impacted by increased brand investment. 3. **Strategic and Tax Impacts**: - Increased brand investment and a higher effective tax rate of 33.6% contributed to the lower EPS. - An increased tax rate and a $68 million impairment charge affected the operating income margin, which decreased to 14.1%. 4. **Full-Year Outlook and Variations**: - Kenvue reaffirmed a full-year adjusted EPS range of $1.10 to $1.20, expecting net sales growth between 1.0% to 3.0%. - The company's FY 2024 earnings guidance provided an EPS guidance of $1.100 to $1.200, slightly below the consensus estimate of $1.140. In summary, while Kenvue experienced slight deviations from forecasts in both quarters, the company's strategic investments and market conditions significantly impacted its financial performance, particularly in terms of net income and EPS.