Group 1 - Kimberly-Clark reported $4.84 billion in revenue for the quarter ended March 2025, a year-over-year decline of 6% [1] - The EPS for the same period was $1.93, down from $2.01 a year ago, with an EPS surprise of +2.12% compared to the consensus estimate of $1.89 [1] - The reported revenue was a surprise of -0.49% over the Zacks Consensus Estimate of $4.86 billion [1] Group 2 - Key metrics indicate that Kimberly-Clark's shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite's -8.9% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [3] Group 3 - Year-over-year changes in net price impact showed a decline of -0.6% versus an estimated -0.5% by analysts [4] - Organic net consolidated revenue decreased by -1.6%, compared to the average estimate of +0.7% [4] - Currency translation had a year-over-year change of -0.4%, slightly worse than the estimated -0.3% [4]

Core Viewpoint - Kimberly-Clark reported better-than-expected adjusted earnings per share of $1.93 for Q1 2025, despite revenue falling short of estimates due to currency impacts and divestitures [2][6]. Financial Performance - Non-GAAP EPS for Q1 2025 was $1.93, exceeding analyst estimates of $1.90, but down 4.0% from $2.01 in Q1 2024 [3][6]. - GAAP revenue was $4.84 billion, missing the projected $4.89 billion, representing a 6.0% decline year-over-year from $5.15 billion [3][7]. - Gross margin (Non-GAAP) slightly decreased to 36.9%, down 20 basis points from the previous year [3][6]. - Net income (GAAP) was $567 million, a decrease of 12.4% from $647 million in Q1 2024 [3]. Business Overview - Kimberly-Clark operates globally with well-known brands such as Huggies, Kleenex, and Kotex, focusing on essential consumer categories [4]. - The company is implementing strategic initiatives centered around supply chain optimization to enhance operational efficiency and cost management [4]. Sustainability and Innovation - The company's sustainability commitment is integral to its strategy, aiming to reduce the environmental impact of its products [5]. - Kimberly-Clark is investing in innovative product development, including acquisitions like Thinx Inc., to support growth in modern product categories [5]. Geographic Performance - North American sales decreased by 3.9%, while International Personal Care saw an 8.9% decline, influenced by unfavorable currency effects [8]. - The company experienced operational improvements despite these declines, attributed to its efficiency-focused transformation initiative [8]. Future Outlook - Kimberly-Clark has adjusted its outlook for 2025, expecting flat to modest improvement in adjusted operating profit and EPS on a constant-currency basis [10]. - The cautious outlook is influenced by ongoing cost challenges, geopolitical considerations, and moderated economic forecasts [10]. - The execution of strategic initiatives, particularly in supply chain optimization and product innovation, will be crucial for the company's financial performance in the coming quarters [11].

Group 1: Earnings Performance - Kimberly-Clark reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.89 per share, but down from $2.01 per share a year ago [1] - The earnings surprise was 2.12%, and the company matched expectations in the previous quarter with earnings of $1.50 per share [2] - Over the last four quarters, Kimberly-Clark has surpassed consensus EPS estimates three times [2] Group 2: Revenue Analysis - The company posted revenues of $4.84 billion for the quarter, missing the Zacks Consensus Estimate by 0.49%, and down from $5.15 billion year-over-year [3] - Kimberly-Clark has topped consensus revenue estimates only once in the last four quarters [3] Group 3: Stock Performance and Outlook - Kimberly-Clark shares have increased approximately 6.9% since the beginning of the year, contrasting with a -12.3% decline in the S&P 500 [4] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $1.88 for the upcoming quarter and $7.51 for the current fiscal year [8] - The Zacks Rank for Kimberly-Clark is 2 (Buy), indicating expected outperformance in the near future [7] Group 4: Industry Context - The Consumer Products - Staples industry, to which Kimberly-Clark belongs, is currently in the bottom 43% of over 250 Zacks industries, which may impact stock performance [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Q1 2025 Performance & Strategy - The company is embarking on "Powering Care" to establish a strong foundation, scaling initiatives in 2025 while transforming, and aiming to accelerate growth by leveraging scale for industry-leading returns in 2026+[9] - The company is focused on accelerating pioneering innovation, optimizing its margin structure, and wiring its organization for growth to navigate a complex and uncertain operating environment[12] - Gross productivity delivered 5.2% of Adjusted COGS in Q1, with higher contributions expected from Network Optimization & Value Stream Simplification initiatives in 2025[20] - The company is on track to deliver $200 million of SG&A savings from rewiring the organization, with Q1 showing initial results[20] Financial Results & Outlook - Q1 2025 organic sales growth was down 1.6%[46], while adjusted operating profit growth was down 3.8%[46], and adjusted EPS growth was down 4.0%[46] - Q1 2025 adjusted free cash flow was $183 million[46] - North America organic growth was down 0.6%[48], while operating profit growth was up 1.3%[48] - International Personal Care organic growth was 2.8% decrease[52], while International Family Care & Professional organic growth was 2.3% decrease[55] - The company projects approximately $2 billion of adjusted free cash flow for 2025, including $1.0-$1.2 billion of capital expenditures[57] Innovation & Market Performance - In Indonesia Adult Care, thinner, more breathable solutions drove +37% organic growth and +31% volume growth[32] - Poise experienced +6.6% consumption growth in the US xAOC+, a 36% increase in first-time buyers at a key online customer, and a ~30 bps share gain in Light Inco in the US xAOC+[35]

Financial Data and Key Metrics Changes - The company's top line was somewhat softer than expectations, but overall results were consistent with the full-year plan [7] - Organic sales growth for the first quarter was slightly below expectations, while profitability was in line, supported by strong productivity delivery [18][19] - The company is targeting a volume and mix-based organic growth for the year that is ahead of the categories in its markets [22] Business Line Data and Key Metrics Changes - The company is on track to generate approximately $200 million of SG&A savings in the next few years [9] - The first quarter saw a decline in North America private label shipments, impacting total company organic sales [20] Market Data and Key Metrics Changes - Weighted average category growth was expected to be around 2% but was in the 1.5% to 2% range for the first quarter [19] - The company faced lower year-on-year North America private label shipments, which represented about 40 basis points to total company organic sales [20] Company Strategy and Development Direction - The company continues to execute its "Powering Care" strategy, focusing on differentiation, productivity, and agility [10][11] - The strategy includes delivering stronger differentiation at every rung of the good-better-best ladder and enabling a faster, more agile organization [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the plan despite external headwinds, emphasizing the importance of innovation and consumer value propositions [26][27] - The company is addressing a $300 million tariff impact, with two-thirds attributed to US tariffs on China, and is working to mitigate these costs through supply chain adjustments [56][60] Other Important Information - The company is maintaining its investments in innovation and marketing despite the cost pressures from tariffs [81] - The management highlighted the importance of affordability for consumers, especially in the current economic environment [71] Q&A Session Summary Question: Organic growth performance in North America - Management acknowledged that organic sales were below expectations and discussed factors affecting this, including a lower category growth rate and strategic pricing investments [18][19][20] Question: Impact of tariffs on costs - Management detailed the $300 million tariff impact, with two-thirds coming from US tariffs on China, and discussed strategies to mitigate these costs [56][60] Question: Pricing strategy and consumer behavior - Management emphasized the importance of maintaining product quality while managing pricing and highlighted the shift towards more affordable product offerings [71][72] Question: Guidance on EPS growth - Management explained that the primary change in guidance was due to the $300 million gross impact from tariffs, while still planning to invest in innovation and marketing [117][120] Question: Savings program and productivity - Management confirmed that they are ahead of their productivity savings targets and are optimistic about future savings opportunities [149][151]

Core Viewpoint - Kimberly-Clark Corp. has lowered its profit expectations for the year due to the impact of global trade tensions on its costs, leading to uncertainty in its financial outlook [1] Financial Performance - The company now anticipates that its adjusted operating profit for 2025 will be flat or show slight growth, a revision from the earlier forecast of high single-digit growth made in January [1] - CEO Mike Hsu indicated that the current environment will result in higher costs for the global supply chain than previously expected at the beginning of the year [1] Management Outlook - Despite the challenges, the CEO expressed confidence that the company can offset these costs over time, which would help improve profitability [1]

Financial Performance - Net sales for Q1 2025 were $4.8 billion, a decrease of 6.0% compared to the prior year, impacted by approximately 2.4% from foreign currency translation and 2.0% from divestitures and business exits[4][6] - Operating profit for Q1 2025 was $769 million, down from $853 million in the prior year, reflecting charges related to the 2024 Transformation Initiative[5][6] - Net income attributable to Kimberly-Clark Corporation was $567 million, a decline of 12.4% from $647 million in 2024[32] - Cash provided by operations was $327 million, down from $438 million in the same period last year[36] - Income Before Income Taxes for Q1 2025 was reported at $694 million, compared to $781 million in Q1 2024, reflecting a decrease of approximately 11.1%[46] Earnings and Margins - Adjusted gross margin was 36.9%, down 20 basis points from the prior year, while reported gross margin was 35.8%[5][6] - Diluted earnings per share (EPS) were $1.70, down from $1.91 in the prior year, with adjusted EPS decreasing 4.0% to $1.93[9][6] - Diluted earnings per share decreased to $1.70, down 11.0% from $1.91 in the prior year[32] - Adjusted operating profit for the three months ended March 31, 2025, was $844 million, compared to $898 million in 2024[45] Sales Performance - North America net sales decreased 3.9% to $2.7 billion, with organic sales declining 0.6% primarily due to unfavorable price impacts[12] - International Personal Care (IPC) net sales were $1.4 billion, down 8.9%, with organic sales decreasing 2.8% driven by price investments[14] - Organic sales growth for the consolidated segment was reported at -1.6% for the three months ended March 31, 2025[43] - Net sales for the three months ended March 31, 2025, were $4,840 million, a decrease of 6.0% compared to $5,149 million in 2024[32] Future Outlook - The company expects 2025 organic sales growth to outpace the market growth of 1.5% to 2%[19] - Adjusted operating profit for 2025 is now expected to be flat to positive on a constant-currency basis, revised from previous expectations of high single-digit growth[20] - Adjusted free cash flow is now expected to be approximately $2 billion in 2025, down from a previous expectation of more than $2 billion[23] Balance Sheet - Total debt as of March 31, 2025, was $7.2 billion, a decrease from $7.4 billion as of December 31, 2024[18] - Total current assets decreased to $5,281 million from $5,580 million as of December 31, 2024[34] - Total liabilities decreased to $16,305 million from $16,546 million at the end of 2024[34] Taxation - The Adjusted Effective Tax Rate for Q1 2025 was 21.4%, while the reported rate for Q1 2024 was 23.6%[46] - The effective tax rate as reported for Q1 2025 was 23.8%, slightly higher than the 23.6% reported for Q1 2024[46]

Core Insights - Kimberly-Clark Corporation reported a first quarter 2025 net sales of $4.8 billion, a decrease of 6.0% compared to the previous year, impacted by foreign currency translation and divestitures [4][9] - The company adjusted its full-year outlook due to anticipated increased costs from a more uncertain geopolitical landscape, while maintaining confidence in its long-term growth potential [2][21] Financial Performance - Gross margin for the quarter was 35.8%, with an adjusted gross margin of 36.9%, down 20 basis points from the prior year [5][9] - Operating profit was reported at $769 million, down from $853 million in the prior year, with adjusted operating profit at $844 million, reflecting a 6.0% decrease [6][9] - Diluted earnings per share (EPS) were $1.70, down from $1.91 in the prior year, while adjusted EPS decreased 4.0% to $1.93 [8][9] Business Segment Results - North America net sales decreased by 3.9% to $2.7 billion, with organic sales down 0.6% primarily due to price impacts [12][34] - International Personal Care (IPC) net sales fell 8.9% to $1.4 billion, with organic sales down 2.8% driven by price investments [14][35] - International Family Care & Professional (IFP) sales decreased 7.7% to $791 million, with organic sales down 2.3% [16][35] Cash Flow and Balance Sheet - Cash provided by operations was $327 million, down from $438 million, while capital spending increased to $204 million [18][33] - Total debt as of March 31, 2025, was $7.2 billion, a decrease from $7.4 billion at the end of 2024 [18] 2025 Outlook - The company expects organic sales growth in 2025 to outpace the average growth in its categories, with reported net sales forecasted to reflect a negative impact from currency translation and divestitures [20][21] - Adjusted operating profit is now expected to be flat to positive on a constant-currency basis, a revision from previous expectations of high single-digit growth [21][22]

Core Viewpoint - Kimberly-Clark Corporation (KMB) is expected to report declines in both revenue and earnings for the first quarter of 2025, with revenue estimates at $4.9 billion, reflecting a 5.5% decrease year-over-year [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for quarterly earnings has decreased by 2 cents to $1.89 per share, indicating a 6% decline from the previous year's figure [2]. - The company has experienced a trailing four-quarter earnings surprise of 12.5% on average [2]. Segment Performance - Sales are projected to decline across various segments: North America by 0.9%, International Personal Care by 12.5%, and International Family Care & Professional by 8.8% in the upcoming quarter [2]. Strategic Challenges - Kimberly-Clark's exit from private label products is anticipated to create a near-term revenue headwind, compounded by ongoing retailer destocking affecting shipment volumes [3]. - Elevated cost pressures, particularly from higher pulp prices and limited pricing flexibility, are expected to compress margins, with adjusted gross profit estimated at $1,801.3 million, down from $1,911 million in the prior year [4]. Strategic Initiatives - The company is advancing its Powering Care Strategy, which emphasizes growth, operational efficiency, and organizational alignment, potentially providing some relief through a volume-and-mix-led growth model supported by innovation and premium product adoption [5]. Earnings Prediction Model - The current model does not predict an earnings beat for Kimberly-Clark, as it holds a Zacks Rank of 2 and an Earnings ESP of -0.73% [6].

Core Viewpoint - Kimberly-Clark (KMB) is anticipated to report a year-over-year decline in earnings and revenues for the quarter ended March 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for April 22, 2025, with a consensus estimate of $1.89 per share, reflecting a 6% decrease year-over-year. Revenues are projected to be $4.84 billion, down 6.1% from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.26% higher, indicating a slight reassessment by analysts [4]. However, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -0.73%, suggesting a bearish outlook on the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. However, Kimberly-Clark's current negative Earnings ESP reading complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Kimberly-Clark met the consensus EPS estimate of $1.50, resulting in no surprise. Over the past four quarters, the company has beaten consensus EPS estimates three times [12][13]. Conclusion - Kimberly-Clark does not appear to be a strong candidate for an earnings beat based on current estimates and revisions. Investors are advised to consider other factors in addition to earnings expectations when evaluating the stock ahead of its earnings release [16][15].