Kenvue Inc.'s stock (KVUE, -1.25%) experienced a decline of 2.4% in premarket trade on Thursday. The company announced its third-quarter earnings, which were in-line with expectations. However, due to a slower start to the flu and cold season, Kenvue Inc. has tightened its full-year guidance.

Quarterly Performance

For the quarter, Kenvue Inc., formerly the consumer health operations of Johnson & Johnson (JNJ, +0.22%), reported a net income of $438 million, or 23 cents per share. This is a decrease from $586 million, or 34 cents per share, compared to the same period last year. When adjusted, the earnings per share came in at 31 cents, matching the FactSet consensus.

Sales Growth

Despite the decrease in earnings, Kenvue Inc.'s sales rose to $3.915 billion from $3.789 billion in the previous year. FactSet had anticipated sales of $3.906 billion, slightly below the actual figure.

Challenging Outlook

The company now anticipates that the strength of the dollar will negatively impact full-year sales by approximately 1 to 2 percentage points, which is higher than its previous estimate of one percentage point. This adjustment takes into account the softer-than-anticipated start to the cough, cold, and flu season and increased foreign exchange impact. As a result, Kenvue Inc. has tightened its net sales outlook for fiscal 2023 to a range of 4.0% to 4.5%.

Adjusted Earnings Expectations

Kenvue Inc. expects adjusted earnings per share in the range of $.26 to $1.28 for fiscal 2023, as opposed to the FactSet consensus of $1.28.

Market Performance

Over the past three months, Kenvue Inc.'s stock has experienced a decline of 20%, while the S&P 500 (SPX, -1.43%) has fallen by 8%.

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