Kimberly-Clark (NASDAQ:KMB) Announces Earnings Results, Misses Estimates By $0.21 EPS

Kimberly-Clark (NASDAQ:KMB) posted its earnings results on Tuesday. The company reported $1.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.21), Zacks reports. Kimberly-Clark had a net margin of 11.79% and a return on equity of 143.92%. The business had revenue of $4.19 billion for the quarter, compared to analysts’ expectations of $4.22 billion. During the same period last year, the firm posted $1.92 earnings per share. Kimberly-Clark’s quarterly revenue was up .6% on a year-over-year basis.

Here are the key takeaways from Kimberly-Clark’s conference call:

• Kimberly-Clark lowered its full-year outlook after second-quarter organic sales fell below expectations, primarily due to a China diaper disruption, North American retailer inventory reductions, softer category growth, and other one-time costs.
• Adjusted operating profit and EPS exceeded expectations, supported by a $45 million North American tariff refund and strong 6.4% gross productivity, which more than offset higher brand investment and other pressures.
• The company expects China to remain a significant headwind in the second half, estimating roughly 200 basis points of sales impact and about $70 million of operating-profit pressure, while assuming only modest recovery and no near-term inflection.
• Management expressed confidence in the long-term Kenvue combination, citing strong progress toward the previously announced $1.9 billion cost-synergy target, while cautioning that it is too early to provide a specific 2027 outlook.
• Kimberly-Clark highlighted its new alternative natural-fiber platform, the Arbex joint venture with Suzano, and a strong innovation pipeline as potential long-term drivers of improved product performance, lower fiber-cost volatility, margin expansion, and growth.

Kimberly-Clark Price Performance

NASDAQ KMB opened at $112.37 on Thursday. The company has a debt-to-equity ratio of 3.45, a quick ratio of 0.55 and a current ratio of 0.91. The company has a market cap of $37.30 billion, a PE ratio of 19.11, a P/E/G ratio of 5.02 and a beta of 0.26. Kimberly-Clark has a 52-week low of $92.42 and a 52-week high of $137.46. The firm’s 50 day moving average price is $106.43 and its 200-day moving average price is $102.73.

Kimberly-Clark Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 4th will be issued a $1.28 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.12 annualized dividend and a dividend yield of 4.6%. Kimberly-Clark’s payout ratio is currently 87.07%.

Institutional Investors Weigh In On Kimberly-Clark

Several institutional investors have recently added to or reduced their stakes in KMB. CrossGen Wealth LLC purchased a new stake in Kimberly-Clark in the fourth quarter valued at approximately $27,000. Darwin Wealth Management LLC acquired a new stake in shares of Kimberly-Clark in the second quarter valued at about $27,000. Jessup Wealth Management Inc acquired a new stake in shares of Kimberly-Clark in the fourth quarter worth approximately $36,000. Ankerstar Wealth LLC purchased a new position in Kimberly-Clark during the fourth quarter worth approximately $37,000. Finally, Turning Point Benefit Group Inc. acquired a new position in shares of Kimberly-Clark during the 3rd quarter valued at about $45,000. Institutional investors and hedge funds own 76.29% of the company’s stock.

Analyst Upgrades and Downgrades

KMB has been the topic of several research reports. Piper Sandler lifted their price objective on Kimberly-Clark from $115.00 to $121.00 and gave the company an “overweight” rating in a research report on Wednesday, June 17th. Weiss Ratings upgraded Kimberly-Clark from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. UBS Group raised their price objective on Kimberly-Clark from $115.00 to $116.00 and gave the company a “neutral” rating in a research report on Wednesday. Wells Fargo & Company upped their target price on shares of Kimberly-Clark from $100.00 to $110.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 8th. Finally, TD Cowen boosted their price target on Kimberly-Clark from $96.00 to $104.00 and gave the stock a “hold” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Kimberly-Clark presently has an average rating of “Hold” and an average price target of $117.93.

About Kimberly-Clark

Kimberly-Clark Corporation is a U.S.-based multinational manufacturer of personal care and consumer tissue products. The company develops, produces and markets a range of consumer brands and professional products, including facial and bathroom tissues, disposable diapers and training pants, feminine care, incontinence products and workplace hygiene solutions. Known for consumer-facing names such as Kleenex, Huggies, Kotex, Cottonelle and Scott, as well as professional offerings under Kimberly-Clark Professional and KleenGuard, the company supplies goods to retail, healthcare and institutional customers.

Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has expanded from its 19th-century paper-making roots into a global household and workplace products company.