Will KVUE's Q1 2025 earnings beat forecasts like in early 2024?

Kenvue's Q1 2025 earnings are unlikely to beat forecasts as they did in early 2024. Here's why:

1. Consensus Expectations: For Q1 2025, analysts have forecasted an EPS of $1.14, which is lower than the $1.440-$1.469 guidance provided by Kenvue. This suggests a more conservative outlook on earnings.

2. Recent Performance: Kenvue's recent performance has been mixed. While there was a significant increase in short interest, indicating potential bearish sentiment, the trading price has been fluctuating around $23.38, with a 52-week high and low of $24.46 and $17.67, respectively. This volatility suggests that while there is potential for growth, it may not be evenly distributed across all periods.
3. Market Conditions: The company faces headwinds from foreign currency translation, which affected its fourth-quarter sales and led to a missed revenue target. These factors could persist into Q1 2025, impacting earnings.
4. Dividend Yield: Kenvue has a dividend yield of 3.49%, which is attractive to income-focused investors. However, high dividend payouts can indicate a lack of growth potential, which may affect investor sentiment and earnings expectations.
5. Analyst Ratings: The average analyst rating for Kenvue is "Hold," with a consensus price target of $23.00. This suggests a cautious outlook among analysts, which could influence earnings expectations downward.

In conclusion, while Kenvue has a history of beating earnings forecasts, the current analyst consensus and the company's own guidance suggest that Q1 2025 earnings may not exceed expectations as they did in early 2024.