Kimberly-Clark Q3 Earnings Top, Organic Sales View Decreases

Core Insights - Kimberly-Clark Corporation (KMB) reported third-quarter 2024 results with earnings exceeding estimates but sales falling short of expectations [1][2] - Adjusted earnings were $1.83 per share, surpassing the Zacks Consensus Estimate of $1.69, marking a 5% year-over-year increase [1][2] - Sales totaled $4,952 million, missing the consensus estimate of $5,063 million and reflecting a 4% decline year over year [2] Sales Performance - Organic sales grew by 1% year over year, primarily driven by robust pricing actions [3] - North America experienced a 1% decline in organic sales, while Developing and Emerging (D&E) markets saw an 8% increase [3][5] - The decline in North America was attributed to a 3% drop in K-C Professional and a 1% decrease in Consumer Tissue [3] Segment Analysis - Personal Care segment sales were $2,635 million, down 2% year over year, with organic sales rising by 3% [5] - Consumer Tissue segment sales fell 2% to $1,539 million, with organic sales down 1% due to inventory reductions [5] - K-C Professional segment sales dropped 10% to $767 million, impacted by unfavorable currency rates and divestitures [6] Financial Metrics - Adjusted gross margin expanded by 90 basis points to 36.7%, attributed to solid productivity gains [4] - Adjusted operating profit increased by 5%, despite a 4% adverse impact from unfavorable currency translations [4] - Cash and cash equivalents stood at $1,111 million, with long-term debt of $6,882 million [7] Future Outlook - Organic net sales are projected to grow between 3% and 4%, revised down from a previously anticipated mid-single-digit growth rate [7] - Adjusted operating profit and earnings per share are expected to grow at a mid-to-high teens percentage rate on a constant currency basis in 2024 [8]