Kimberly-Clark (NASDAQ:KMB) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Kimberly‑Clark reported quarterly EPS of $1.97, beating estimates by $0.04, with revenue of $4.16 billion (up 2.7% YoY) and management citing continued momentum with 3% volume-plus-mix growth and share gains in baby care, women's health and active aging.
• Management warned of potential incremental input-cost exposure of roughly $150–$170 million if oil remains near $100/barrel, plus an expected ~$50 million Q2 operating-profit impact and a ~$20 million Q2 sales hit from a California distribution-center fire, items not fully built into guidance.
• Leadership expects to mitigate cost pressure via an integrated margin-management approach (pricing net of commodity), programmatic hedging/supplier contracts and a productivity pipeline after consecutive 6% gross productivity years, while the planned Kenvue combination is progressing with expected COGS, SG&A and revenue synergies.

Kimberly-Clark (NASDAQ:KMB - Get Free Report) posted its earnings results on Tuesday. The company reported $1.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.93 by $0.04, Zacks reports. The firm had revenue of $4.16 billion during the quarter, compared to analysts' expectations of $4.09 billion. Kimberly-Clark had a net margin of 11.73% and a return on equity of 170.48%. The business's revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the business posted $1.93 EPS.

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

• Kimberly‑Clark reported continued underlying momentum with 3% volume plus mix growth, share gains in baby care, women's health and active aging, and innovation-driven product launches driving trial and penetration.
• Management warned of potential incremental input-cost exposure of roughly $150–$170 million in the back half if oil remains near $100/barrel, plus an expected ~$50 million Q2 operating-profit impact and a ~$20 million Q2 sales hit from the California distribution‑center fire, items not fully built into guidance.
• Leadership says it can mitigate cost pressure via an integrated margin-management approach (PNOC — pricing net of commodity), programmatic hedging/supplier contracts and a rich productivity pipeline after delivering consecutive 6% gross productivity years and committing to another full‑year target.
• The planned Kenvue combination and integration planning (40+ teams) are progressing, with expected synergies across COGS, SG&A and revenue channels and a blended leadership team intended to scale a new health‑and‑wellness leader.

Kimberly-Clark Stock Performance

NASDAQ KMB opened at $98.97 on Tuesday. The business's 50 day moving average price is $100.95 and its 200-day moving average price is $103.92. The company has a market cap of $32.85 billion, a P/E ratio of 16.28, a P/E/G ratio of 3.79 and a beta of 0.28. The company has a debt-to-equity ratio of 3.97, a quick ratio of 0.54 and a current ratio of 0.75. Kimberly-Clark has a fifty-two week low of $92.42 and a fifty-two week high of $144.30.

Analysts Set New Price Targets

Several research firms recently commented on KMB. Citigroup reduced their price objective on Kimberly-Clark from $95.00 to $90.00 and set a "sell" rating for the company in a research note on Wednesday, January 14th. Zacks Research lowered shares of Kimberly-Clark from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 3rd. Barclays cut their price objective on shares of Kimberly-Clark from $105.00 to $99.00 and set an "equal weight" rating for the company in a report on Tuesday, April 14th. Deutsche Bank Aktiengesellschaft lowered their price objective on Kimberly-Clark from $110.00 to $109.00 and set a "hold" rating on the stock in a research note on Monday, March 30th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Kimberly-Clark in a research report on Friday, March 27th. Four analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $114.86.

Insider Buying and Selling at Kimberly-Clark

In other Kimberly-Clark news, VP Andrew Scribner sold 3,049 shares of the stock in a transaction dated Thursday, February 5th. The shares were sold at an average price of $104.29, for a total transaction of $317,980.21. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 0.75% of the company's stock.

Institutional Trading of Kimberly-Clark

Several large investors have recently bought and sold shares of KMB. Crawford Investment Counsel Inc. lifted its stake in shares of Kimberly-Clark by 1.1% during the 4th quarter. Crawford Investment Counsel Inc. now owns 11,162 shares of the company's stock worth $1,126,000 after purchasing an additional 125 shares during the last quarter. Boothbay Fund Management LLC lifted its position in shares of Kimberly-Clark by 8.8% during the second quarter. Boothbay Fund Management LLC now owns 1,827 shares of the company's stock valued at $236,000 after buying an additional 148 shares during the last quarter. Coldstream Capital Management Inc. boosted its holdings in shares of Kimberly-Clark by 2.9% in the 3rd quarter. Coldstream Capital Management Inc. now owns 5,381 shares of the company's stock valued at $669,000 after buying an additional 150 shares in the last quarter. Modern Wealth Management LLC raised its stake in shares of Kimberly-Clark by 6.1% during the 2nd quarter. Modern Wealth Management LLC now owns 2,779 shares of the company's stock worth $358,000 after acquiring an additional 161 shares in the last quarter. Finally, Optimist Retirement Group LLC lifted its position in Kimberly-Clark by 1.1% during the third quarter. Optimist Retirement Group LLC now owns 18,252 shares of the company's stock valued at $2,269,000 after acquiring an additional 194 shares during the last quarter. Hedge funds and other institutional investors own 76.29% of the company's stock.

Kimberly-Clark Company Profile

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.