03:54 PM EST, 11/05/2024 (MT Newswires) -- Kenvue ( KVUE ) is likely to have a "muted" Q3, with challenges in skin health & beauty offset slightly by gains in essential health and self care segments, RBC Capital Markets said in a report Tuesday.

RBC estimates Kenvue ( KVUE ) Q3 adjusted earnings of $0.27 per share on revenue of $3.91 billion, compared with consensus estimates of $0.28 and $3.93 billion, respectively.

The investment firm said it does not expect "much progress" in the skin health & beauty segment but this is likely to be partially offset by "momentum" in essential health and a "modest upside" in self care.

Due to the issues in the skin health & beauty segment, RBC said it is "more comfortable" on the lower end of the company's guidance ranges for 2024 of $1.10 to $1.20 in adjusted EPS and 1% to 3% in net sales growth.

RBC maintained its sector perform rating and $24 price target on Kenvue ( KVUE ).

"[Kenvue ( KVUE )] must demonstrate sequential improvement/consistent delivery in order for shares to rate higher. While we acknowledge the company is getting better at expectations management and self care/essential health segments are performing well, we are struggling to justify any more upside as we believe skin health & beauty will remain under pressure," RBC said.

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