Diving into Kenvue’s Financial Performance
Embarking on a financial voyage, Kenvue witnessed a meteoric rise of over 14.6% following its Q2 earnings report that defied Wall Street’s expectations. Despite a slight year-over-year dip, the company’s net sales of $4 billion surpassed the projected $3.9 billion mark. Adjusted EPS soared by 3.3%, settling at $0.32 and outstripping forecasts by a noteworthy 14.5%. With a majestic leap, the gross margin escalated to 59.1% from 55.5% in the same quarter the previous year, showcasing a robust surge in performance and pricing strategy.
Peering into the horizon, CEO Thibaut Mongon expressed, “With the progress achieved in the first half of the year in enhancing productivity and freeing up resources, we are now accelerating investments across our esteemed global brands portfolio to connect with more consumers and actualize our long-term value creation algorithm.”
For fiscal 2024, management cemented its outlook, foreseeing net sales growth ranging between 1% to 3%, while organic net sales growth is poised between 2% and 4%. Additionally, adjusted EPS is slated to land within the bracket of $1.10 to $1.20.
Glancing ahead, analysts envision a 16.3% dip in Kenvue’s bottom line for the fiscal year 2024, culminating in $1.08 per share, before resurging by 13.9% to reach $1.23 per share in fiscal 2025.
American Water Works: A Refreshing Oasis of Stability
Steering towards American Water Works, a stalwart valued at $28.15 billion, the New Jersey-based company, with roots stretching back to 1886, stands as a premier name in the regulated water and wastewater utility domain in the U.S. that caters to over 14 million individuals across 14 states and 18 military installations.
With a YTD surge of approximately 9%, American Water Works stock has been a beacon of stability. Over the last six months, the stock catapulted by 19.6%, outpacing the broader SPX’s 5.9% return during the same period.
Besides offering a delightful dividend yield, the stock appears attractively priced at current levels, trading beneath its own five-year averages. The company, with a legacy of 15 consecutive years of dividend increments and a payout ratio of 58.83%, exudes dedication towards providing alluring returns to its investors.
After a mixed Q2 earnings report released on July 31, American Water Works witnessed a 1.5% spike in its shares the following trading day. The company experienced a 4.8% upsurge in revenue year over year, amassing $1.2 billion, surpassing estimates by 4.1%. Although its EPS of $1.42 fell short of Wall Street’s anticipation, it hovered nearly unchanged compared to the previous year.
Accelerating forward, CEO M. Susan Hardwick noted, “As results remain relatively stable year over year, it aligns with our expectations, as we anticipate the outcomes of our recent regulatory initiatives to materialize later this year.”
For fiscal 2024, the management foresees an EPS range between $5.25 and $5.30 and remains firmly on track to meet its 2024 capital investment objectives. By the year-end, American Water Works envisages channeling about $3.1 billion across its operational avenues.
Looking through the lens of analysts, American Water Works is expected to witness a 7.4% profit growth year over year to hit $5.26 per share in fiscal 2024, followed by an 8.2% leap to $5.69 per share in fiscal 2025.