04:04 PM EDT, 08/02/2024 (MT Newswires) -- Kenvue ( KVUE ) is expected to report weaker results for Q2, as recent performance struggles continue, RBC Capital Markets said in a note Friday.

Kenvue ( KVUE ) "over-delivered" last quarter, which was an improvement, but the company still faces Q2 pressure from destocking and seasonal issues, RBC said.

RBC estimates Q2 non-GAAP earnings of $0.25 per share on net sales of $3.92 billion, compared with consensus estimates of $0.28 and $3.93 billion, respectively, according to the note. Kenvue ( KVUE ) reported Q2 non-GAAP EPS of $0.32 on net sales of $4.01 billion a year earlier.

"[Kenvue ( KVUE )] shares have underperformed over the last three months, impacted by [Johnson & Johnson ( JNJ ) ] exiting its remaining stake, softer seasonal trends (which management has acknowledged), and muted share performance in Skin Health & Beauty," RBC said.

Kenvue ( KVUE ) said it will release its Q2 financial results on Tuesday.

"While we believe management has done a better job of acknowledging its missteps and has a plan in place, we believe it will likely take a few quarters for investors to regain confidence in the story," RBC said.

RBC has an outperform rating on Kenvue ( KVUE ) with a price target of $24.

Price: 18.78, Change: +0.15, Percent Change: +0.81