Kenvue's Stock Surges 22% in Premarket Trading on Strong Q3 Earnings Report and Merger News
Kenvue's stock price surged by more than 22% in premarket trading following the release of its third-quarter earnings report. The company exceeded analyst expectations with earnings of $0.28 per share and reported quarterly revenue of $3.76 billion. Despite a 3.5% decline in net sales compared to the previous year, Kenvue's adjusted gross profit margin improved to 61.2%. The company's CEO, Kirk Perry, expressed confidence in Kenvue's performance and reiterated the full-year earnings guidance.
Kenvue reaffirmed its full-year 2025 outlook, projecting earnings per share between $1.00 and $1.05. The company anticipates a low-single-digit decline in net and organic sales, with adjusted operating margins expected to trend lower year-over-year. Additionally, Kenvue announced a definitive merger agreement with Kimberly-Clark, under which the latter will acquire all outstanding shares of Kenvue common stock in a $48.7 billion cash-and-stock transaction.
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