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

Key Points

• Kimberly-Clark missed quarterly expectations, reporting $1.80 in EPS versus the $2.01 consensus and revenue of $4.19 billion versus $4.22 billion. Revenue increased 0.6% year over year, but net income declined 32.2%.
• The company lowered its full-year sales and profit outlook, citing disrupted China diaper demand, retailer inventory reductions, softer category growth and one-time costs. China is expected to remain a major second-half headwind, with estimated pressure of about $70 million on operating profit.
• Kimberly-Clark declared a $1.28 quarterly dividend, equivalent to $5.12 annually and a yield of roughly 4.7%, while management highlighted productivity savings, Kenvue merger synergies and new natural-fiber technology as longer-term growth opportunities.

Kimberly-Clark (NASDAQ:KMB - Get Free Report) posted its quarterly earnings data 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. The firm had revenue of $4.19 billion for the quarter, compared to the consensus estimate of $4.22 billion. Kimberly-Clark had a return on equity of 152.79% and a net margin of 12.80%.Kimberly-Clark's quarterly revenue was up .6% on a year-over-year basis. During the same period in the prior year, the company posted $1.92 earnings per share.

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 Stock Up 0.3%

NASDAQ KMB traded up $0.34 on Tuesday, hitting $107.90. 1,880,778 shares of the company were exchanged, compared to its average volume of 5,044,368. The company has a current ratio of 0.77, a quick ratio of 0.55 and a debt-to-equity ratio of 3.38. The company has a market cap of $35.82 billion, a PE ratio of 16.96, a PEG ratio of 4.90 and a beta of 0.26. The stock has a fifty day moving average of $105.93 and a 200-day moving average of $102.55. Kimberly-Clark has a 12 month low of $92.42 and a 12 month high of $137.46.

Kimberly-Clark Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Friday, September 4th will be given a dividend of $1.28 per share. This represents a $5.12 dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date is Friday, September 4th. Kimberly-Clark's payout ratio is presently 80.38%.

Insider Buying and Selling at Kimberly-Clark

In other news, VP Andrew Scribner sold 4,095 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $98.00, for a total transaction of $401,310.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.75% of the company's stock.

Institutional Investors Weigh In On Kimberly-Clark

Several hedge funds and other institutional investors have recently modified their holdings of KMB. Darwin Wealth Management LLC acquired a new stake in Kimberly-Clark in the 2nd quarter valued at $27,000. CrossGen Wealth LLC bought a new position in shares of Kimberly-Clark in the fourth quarter valued at $27,000. Jessup Wealth Management Inc acquired a new position in shares of Kimberly-Clark during the fourth quarter valued at about $36,000. Turning Point Benefit Group Inc. bought a new stake in shares of Kimberly-Clark during the third quarter worth about $45,000. Finally, Ankerstar Wealth LLC acquired a new stake in shares of Kimberly-Clark in the 4th quarter worth about $37,000. Institutional investors own 76.29% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on KMB shares. Weiss Ratings raised shares of Kimberly-Clark from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. Piper Sandler increased their price objective on Kimberly-Clark from $115.00 to $121.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. Wells Fargo & Company lifted their target price on Kimberly-Clark from $100.00 to $110.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 8th. Bank of America lowered their price objective on Kimberly-Clark from $130.00 to $120.00 and set a "buy" rating for the company in a research report on Friday, April 10th. Finally, Barclays upped their target price on Kimberly-Clark from $101.00 to $115.00 and gave the company an "equal weight" rating in a report on Tuesday, July 21st. Four investment 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. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $117.93.

Kimberly-Clark News Summary

Here are the key news stories impacting Kimberly-Clark this week:

• Positive Sentiment: Adjusted second-quarter earnings per share were $1.80, while adjusted operating profit increased 6.2% year over year. Productivity savings, volume-and-mix gains and expanded gross margins helped offset several unfavorable items. Kimberly-Clark Q2 earnings report
• Positive Sentiment: Kimberly-Clark maintained momentum in its broader business, with second-quarter net sales of approximately $4.2 billion, up 0.6% from a year earlier, and first-half sales growth of 1.6%. The planned Kenvue acquisition remains on track to close by year-end. Kimberly-Clark second-quarter results
• Positive Sentiment: The board declared a regular quarterly dividend of $1.28 per share, payable October 2 to shareholders of record September 4. Kimberly-Clark dividend announcement
• Neutral Sentiment: The company unveiled a patented, plant-based fiber platform intended to develop more sustainable materials for hygiene and paper products. The initiative could support long-term cost, innovation and sustainability goals, but its financial impact is not yet clear. Kimberly-Clark alternative fiber program
• Negative Sentiment: Kimberly-Clark cut its 2026 sales and profit forecasts, now expecting organic sales growth to run about 100 basis points below weighted-average category growth. Net income fell 32.2% year over year, and revenue missed expectations. Reuters Kimberly-Clark forecast report
• Negative Sentiment: The China controversy is the primary near-term overhang. A state-run newspaper alleged that Huggies diapers contained formamide, while Kimberly-Clark said the claims were false; the resulting social-media firestorm nevertheless disrupted consumer demand. Huggies China quality allegations

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.

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