Kimberly-Clark(KMB)

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Kimberly-Clark: Downgrade Back To Sell Rating On Negative Earnings Outlook
Seeking Alpha· 2025-04-24 11:03
Group 1 - The article provides an update on Kimberly-Clark (NYSE: KMB) following a previous upgrade to a hold rating, indicating that near-term weaknesses have been priced in [1] - The investment approach is fundamentally based, focusing on long-term durability and affordability rather than just low multiples [1] - The company is characterized by steady long-term growth, a lack of cyclicality, and a robust balance sheet, which are key factors in investment decisions [1] Group 2 - There is an acknowledgment of the risks involved in investing in successful companies, particularly the potential to overpay, highlighting the importance of valuation [1] - The article suggests that in certain situations, the potential for growth may outweigh immediate price concerns, indicating a broader perspective on investment opportunities [1]
Kimberly-Clark Analysts Slash Their Forecasts Following Weak Sales
Benzinga· 2025-04-23 17:23
Core Insights - Kimberly-Clark Corporation reported weaker-than-expected first-quarter sales, with quarterly adjusted earnings per share at $1.93, surpassing the analyst consensus estimate of $1.89, while quarterly sales were $4.84 billion, down 6%, missing the expected $4.88 billion [1] - The company anticipates its 2025 Adjusted Operating Profit to be flat to positive on a constant-currency basis, a significant downgrade from the previous expectation of high single-digit growth [2] - Analysts have adjusted their price targets for Kimberly-Clark following the earnings announcement, reflecting a cautious outlook [3][7] Financial Performance - Quarterly adjusted earnings per share were $1.93, beating the consensus estimate of $1.89 [1] - Quarterly sales totaled $4.84 billion, a 6% decline compared to the previous year, missing the expected $4.88 billion [1] - The company expects a 200 basis point impact on reported net sales from currency translation, an improvement from the earlier estimate of 300 basis points [2] Strategic Outlook - The CEO indicated that the current environment will lead to greater costs across the global supply chain than initially expected [1] - The divestment of the PPE business and exit from the U.S. private label diaper segment is projected to negatively impact sales by an additional 240 basis points [2] Analyst Ratings - Evercore ISI Group maintained an Outperform rating but lowered the price target from $168 to $155 [7] - Piper Sandler also maintained an Overweight rating, reducing the price target from $158 to $156 [7] - RBC Capital kept an Outperform rating while lowering the price target from $165 to $162 [7]
Dividend King Kimberly-Clark Is a Good Buy in 2025
MarketBeat· 2025-04-23 12:15
Core Insights - Kimberly-Clark is recognized as a Dividend King, indicating strong cash flows that support reliable dividends and consistent growth in shareholder value [1] - The stock price has experienced fluctuations, with recent downswings followed by anticipated upswings, suggesting a sustainable uptrend [2][3] - The company is well-positioned in the personal care products industry, which is essential and regularly needed, contributing to solid cash flows [5] Financial Performance - In Q1, revenue decreased by 6% to $4.8 billion, slightly below consensus estimates, primarily due to divestitures, while organic contraction was only 1.6% [6] - The adjusted gross margin contracted by 20 basis points, but operating margin was less affected than analysts forecasted, aided by efficiency efforts [7] - Earnings declined by 4%, with free cash flow expected to be nearly $2 billion, indicating financial health [8][9] Capital Returns - Kimberly-Clark has a dividend yield of 3.66%, with an annual dividend of $5.04 and a 54-year track record of dividend increases [10] - Share repurchases reduced the share count by 1.5% in Q1, contributing to capital returns alongside dividends [10] Analyst Sentiment - Analysts maintain a consensus rating of Hold, with institutions owning approximately 75% of the stock, indicating strong institutional interest [11] - There is a forecasted upside of about 5% for the stock this year, with recent price target increases aligning with consensus [11] Market Trends - The stock is currently range-bound but shows signs of regaining a long-term uptrend, with support levels rising [12] - A retest of the all-time high is anticipated, with potential for new highs by the end of the year [12]
Why Kimberly-Clark Stock Was Swooning on Tuesday
The Motley Fool· 2025-04-22 18:56
Group 1 - Kimberly-Clark's share price declined nearly 3% following an unwelcome change in guidance despite quarterly results that were not considered awful [1] - The company reported net sales of $4.84 billion for Q1 2025, a 6% decrease from Q1 2024, attributed to currency impacts and divestitures [2] - Non-GAAP adjusted net income fell by 4% year over year to $1.93 per share, with all three business segments experiencing declines in net sales [3] Group 2 - Kimberly-Clark cut its full-year guidance, now expecting adjusted earnings per share to be flat to slightly positive, with an anticipated $300 million in additional costs due to international trade disputes [4] - Previously, the company had expected profitability to rise by at least a mid-single-digit percentage rate [4] - The current trade situation is perceived as an excuse for the company's underperformance, indicating a need for more than just a stable trade environment to stimulate growth [5]
Kimberly-Clark's Q1 Earnings Top Estimates, Organic Sales Down 1.6%
ZACKS· 2025-04-22 17:56
Core Insights - Kimberly-Clark Corporation reported first-quarter 2025 results with sales missing estimates but adjusted earnings per share exceeding expectations, both metrics showing a year-over-year decline [1][3][12] Financial Performance - Adjusted earnings were $1.93 per share, beating the Zacks Consensus Estimate of $1.89, but down 4% year over year due to reduced operating profit and net income from equity companies [3] - Sales totaled $4,840 million, a 6% decline from $5,149 million in the same period last year, and below the Zacks Consensus Estimate of $4,864 million [3] - Unfavorable foreign currency exchange rates negatively impacted sales by approximately 2.4%, alongside a 2% reduction from divestitures and business exits [3] Segment Performance - North America segment net sales were $2,666 million, down 3.9%, with organic sales decreasing 0.6% primarily due to unfavorable pricing [5] - International Personal Care segment net sales were $1,383 million, an 8.9% decline, with organic sales down 2.8% due to price investments [7] - International Family Care & Professional segment reported net sales of $791 million, a 7.7% decline, with organic sales decreasing 2.3% [9] Operational Metrics - Adjusted gross margin was 36.9%, reflecting a 20-basis point decrease [4] - Adjusted operating profit fell 6% to $844 million, impacted by currency translation [4] Financial Health - The company ended the quarter with cash and cash equivalents of $563 million, long-term debt of $6,481 million, and total stockholders' equity of $1,224 million [11] - Cash provided by operations was $327 million, with capital spending of $204 million, and $466 million returned to shareholders through dividends and share buybacks [11] Future Outlook - For 2025, Kimberly-Clark expects organic sales growth to exceed the market average, currently projected between 1.5% and 2% [12] - Net sales are anticipated to face a negative impact of approximately 200 basis points from currency translation and 240 basis points from divestitures [13] - Adjusted operating profit is now expected to be flat to positive on a constant-currency basis, with similar negative impacts from divestitures and currency rates [14]
Kimberly-Clark(KMB) - 2025 Q1 - Quarterly Report
2025-04-22 15:36
Financial Performance - Net sales for the three months ended March 31, 2025, were $4.84 billion, a decline of 6.0% compared to $5.15 billion in 2024, primarily due to unfavorable currency impacts and divestitures[72]. - Gross profit decreased to $1.73 billion, down 9.3% year-over-year, with a gross margin of 35.8%, reflecting a 130 basis point decrease[72][76]. - Operating profit for the same period was $769 million, a decrease of 9.8%, with adjusted operating profit at $844 million, down 6.0% from $898 million in 2024[72][77]. - Net income attributable to Kimberly-Clark Corporation was $567 million, a decrease of 12.4%, with diluted earnings per share at $1.70, down 11.0% from $1.91[72][82]. - Organic sales decreased by 1.6%, driven by lower pricing, while volume and mix remained flat compared to the prior year[75]. - Adjusted earnings per share for the three months ended March 31, 2025, was $1.93, compared to $2.01 in the prior year[111]. Segment Performance - North America segment net sales were $2.67 billion, a decrease of 3.9%, with operating profit increasing by 1.3% to $676 million[87]. - Net sales for International Personal Care decreased by 8.9% to $1.4 billion, primarily due to unfavorable currency impacts of 6.0% and lower organic sales[89]. - Operating profit for International Personal Care fell by 19.8% to $194 million, mainly due to unfavorable pricing net of cost inflation and currency impacts[90]. - Net sales for International Family Care & Professional decreased by 7.7% to $791 million, driven by divestitures, unfavorable currency impacts, and lower organic sales[91]. - Operating profit for International Family Care & Professional decreased by 3.6% to $106 million, influenced by unfavorable pricing and currency impacts[92]. Cost and Savings Initiatives - The 2024 Transformation Initiative is expected to yield total pre-tax savings of $3.0 billion, with total costs anticipated to be approximately $1.5 billion pre-tax[69]. - Incremental costs due to new U.S. tariffs are estimated at approximately $300 million in 2025, primarily affecting the North America segment[66]. Cash Flow and Capital Expenditures - Cash provided by operations was $327 million, down from $438 million in the prior year, due to lower operating profit and unfavorable changes in working capital[93]. - Cash used for investing was $119 million, a decrease from $181 million in the prior year, with capital spending at $204 million compared to $194 million previously[94]. - The company anticipates full-year capital spending to be approximately $1.0 to $1.2 billion, including spending from the 2024 Transformation Initiative[94]. Taxation - The effective tax rate for the first quarter of 2025 was 23.8%, compared to 23.6% in 2024, with an adjusted effective tax rate of 21.4%[81]. - The effective tax rate as adjusted for the three months ended March 31, 2025, was 21.4%, compared to 23.6% in the prior year[112]. Debt Management - Total debt as of March 31, 2025, was $7.2 billion, down from $7.4 billion as of December 31, 2024[97]. Operational Realignment - The company has realigned its operations into three segments: North America, International Personal Care, and International Family Care and Professional, to enhance reporting and management efficiency[67].
Kimberly-Clark (KMB) Reports Q1 Earnings: What Key Metrics Have to Say
ZACKS· 2025-04-22 14:36
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]
Kimberly-Clark (KMB) Tops Q1 Earnings Estimates
ZACKS· 2025-04-22 13:10
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]
Kimberly-Clark(KMB) - 2025 Q1 - Earnings Call Presentation
2025-04-22 12:44
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]
Kimberly-Clark(KMB) - 2025 Q1 - Earnings Call Transcript
2025-04-22 12:30
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]