Is KVUE's earnings performance signaling long-term stability?

**Kenvue's earnings performance does not currently indicate long-term stability**, as evidenced by several key metrics and analyst assessments:

1. **Recent Financial Performance**: Kenvue's most recent reported net income was $293 million with a year-over-year growth rate of -10.4%. The total revenue was $3.66 billion, representing a slight year-over-year decline of -0.11%. The diluted EPS was $0.15, which is a decrease of 11.76% compared to the previous year. These figures suggest a company facing challenges in maintaining profitability and revenue growth.

|code|Ticker|Name|Date|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|
|KVUE|KVUE.N|Kenvue|2024 Q1|3.894E9|2.96E8|169|
|KVUE|KVUE.N|Kenvue|2024 Q2|4.0E9|5.8E7|169|
|KVUE|KVUE.N|Kenvue|2024 Q3|3.899E9|3.83E8|169|
|KVUE|KVUE.N|Kenvue|2024 Q4|3.662E9|2.93E8|169|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|KVUE|KVUE.N|Kenvue|2024 Q1|-44.44444444444445|0.15|169|
|KVUE|KVUE.N|Kenvue|2024 Q2|-86.95652173913044|0.03|169|
|KVUE|KVUE.N|Kenvue|2024 Q3|-13.043478260869565|0.2|169|
|KVUE|KVUE.N|Kenvue|2024 Q4|-11.764705882352951|0.15|169|

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|KVUE|KVUE.N|Kenvue|2024 Q1|-36.88699360341152|1.0903426791277258|-44.44444444444445|169|
|KVUE|KVUE.N|Kenvue|2024 Q2|-86.51162790697674|-0.2742458239840439|-86.95652173913044|169|
|KVUE|KVUE.N|Kenvue|2024 Q3|-12.557077625570775|-0.4086845466155811|-13.043478260869565|169|
|KVUE|KVUE.N|Kenvue|2024 Q4|-10.397553516819572|-0.10911074740861974|-11.764705882352951|169|

2. **Analyst Ratings and Target Price**: The consensus rating for Kenvue is "Neutral" with an average analyst price target of $23.77, indicating a cautious outlook from analysts. Redburn Atlantic, a firm that has covered Kenvue, assigned a "Neutral" rating and set a price target of $23.50, suggesting a reserved perspective on the company's short-term performance.
3. **Institutional Investor Activity**: Despite the challenges, institutional investors have shown interest in Kenvue. Allstate Corp, Resona Asset Management Co. Ltd., and other hedge funds and pension funds have acquired new positions in the company. This could be seen as a vote of confidence in the company's long-term prospects, but it does not guarantee stability in the short term.
4. **Market Position and Challenges**: Kenvue operates in a competitive sector and faces challenges such as stagnant margins and slight earnings declines in the near term. The company's efforts to strengthen its financial position and expand operations may take time to yield significant results.
5. **Dividend Performance**: Kenvue is a dividend aristocrat with a history of raising payouts, which could be indicative of a mature corporate governance and strong balance sheet. However, the current earnings performance does not necessarily translate to long-term stability unless these trends are sustained and improved over time.

In conclusion, while Kenvue's dividend history and recent institutional investments suggest some resilience, the current earnings trends and analyst ratings indicate a more uncertain picture for long-term stability. The company's ability to turn around its recent performance and sustain growth will be critical in determining its future stability.