Kimberly-Clark Beats on Profit, Misses on Sales as Supply Chain Costs Cloud Outlook

Kimberly-Clark Corporation (NYSE:KMB) is a global leader in the personal care and consumer products industry, known for its popular brands like Huggies, Kleenex, and Scott. Operating in over 175 countries, the company provides essential products that meet everyday needs. As it prepares to release its first-quarter 2025 earnings, analysts are closely watching its financial performance.

The company is set to announce its quarterly earnings on April 22, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $1.89. This figure reflects a 6% decline from the previous year, as highlighted by Zacks Investment Research. The revenue for the quarter is projected to be approximately $4.9 billion, marking a 5.5% decrease from the same quarter last year.

Kimberly-Clark faces challenges such as soft demand, retail destocking, and input cost inflation, which are impacting its key segments. Despite these hurdles, the company has previously delivered an average earnings surprise of 12.5% over the last four quarters. This track record suggests that Kimberly-Clark might still outperform expectations, potentially influencing its stock price positively.

The company's financial metrics reveal a price-to-earnings (P/E) ratio of 18.72 and a price-to-sales ratio of 2.36, indicating how the market values its earnings and sales. However, a high debt-to-equity ratio of 7.77 suggests significant leverage, which could pose risks if earnings continue to decline. The current ratio of 0.80 indicates a limited ability to cover short-term liabilities with short-term assets.

Kimberly-Clark's management will host a live Q&A session with analysts following the earnings release. This discussion will be crucial in understanding the sustainability of any immediate price changes and future earnings expectations. Investors will be keen to hear how the company plans to navigate the complex consumer and retail landscape moving forward.

Kimberly-Clark Corporation (NYSE:KMB) reported disappointing fourth-quarter 2024 results, falling just short of analyst expectations and sending its stock down 1% in pre-market today in response to weaker-than-anticipated performance and a restrained outlook for 2025.

For the quarter, the consumer goods leader posted adjusted earnings per share of $1.50, narrowly missing the consensus estimate of $1.51. Revenue reached $4.93 billion, slightly above forecasts of $4.86 billion, reflecting a 2.3% organic growth rate year-over-year. However, total net sales declined by 0.8% compared to the prior year, signaling challenges in sustaining top-line momentum.

Kimberly-Clark’s adjusted gross margin climbed to 35.4%, an improvement of 50 basis points, thanks to productivity gains that offset some cost pressures.

Looking to 2025, Kimberly-Clark issued a measured forecast, expecting adjusted earnings per share growth in the mid-to-high single digits on a constant-currency basis. This tempered outlook reflects ongoing challenges in balancing growth initiatives with economic uncertainties.

RBC Capital provided its outlook on Kimberly-Clark Corporation (NYSE:KMB) ahead of the company’s upcoming Q4/22 results, expecting organic growth of 3.7%, below the Street estimate of 4.8%.

The analysts are approximately in line with the Street estimates on adjusted EPS ($1.50 vs. $1.51), gross margin (approximately 32%), and EBIT margin (approximately 14.5%).

The analysts expect this quarter to be negatively impacted by market contraction, consistently high pulp prices (although recent prices may signal signs of easing), and FX headwinds.

Given unfavorable market dynamics, continued investment into brands, and uncertainty around input costs, the analysts expect a conservative 2023 guide. The analysts reiterated their Sector Perform rating and $118 price target.

Deutsche Bank analysts provided their outlook on Kimberly-Clark Corporation (NYSE:KMB) ahead of the upcoming Q4/22 results, scheduled on Jan 25.

The analysts expect relatively in-line results vs. Street as potential upside from US consumption momentum is likely hampered by pockets of retailer destocking, FX pressures (albeit abating in the recent weeks), and higher OPEX spend.

According to the analysts, a key focus will be on the company's Q4 gross margin exit rate to help determine the achievability of arguably elevated Street expectations for fiscal 2023.

While the analysts expect the company to provide a full-year organic sales outlook slightly ahead of its long-term algorithm (up 1-3%), they believe 2023 EPS may underwhelm vs. sell-side consensus (a combination of less robust cost relief and management allowances for reinvestment).

Analysts at Deutsche Bank provided their outlook on Kimberly-Clark Corporation (NYSE:KMB) ahead of the company’s Q1 results, which are expected to be reported on April 22.

The company’s shares have broadly underperformed the market since Q4/21 results—as full 2022 guidance once thought potentially conservative is now viewed at risk given a rising cost backdrop and the company’s questionable pricing power amidst growing concerns of a weaker consumer.

While the analysts are modestly above the Street estimates for Q1/22, they are still directionally more cautious on the full year and set-up for the stock given (1) evidence of recent private label share gains in the company's categories, (2) further trade down risk propelled by incremental pricing needed to protect margins in the face of higher costs, and (3) less flexibility for the company to reinvest in the core business.

Kimberly-Clark Corporation (NYSE:KMB) reported its Q4 results, with adjusted EPS coming in at $1.30, slightly above the Street estimate of $1.28. The company achieved a better-than-expected performance during the quarter, with group organic sales growth of 3% coming in ahead of the consensus estimate of 1.5%.

The company’s 2022 guidance suggests further cost pressures ahead. It expects 3-4% organic sales growth for 2022, but a low- to mid-single-digit decline in operating profit. EPS guidance is $5.60-6.00, implying a 6% year-over-year decline to the mid-point and 14% downside to consensus 2022 EPS expectations of $6.76.