Why Is Kimberly-Clark (KMB) Down 0.4% Since Last Earnings Report?

Core Insights - Kimberly-Clark's Q3 2024 earnings exceeded expectations, with adjusted earnings of $1.83 per share, surpassing the Zacks Consensus Estimate of$1.69, reflecting a 5% year-over-year increase [3][4] - However, total sales of $4,952 million fell short of the consensus estimate of$5,063 million, marking a 4% decline compared to the previous year [3][4] - The company has revised its organic sales outlook downward, now projecting growth between 3% and 4%, down from a previously anticipated mid-single-digit growth rate [11] Financial Performance - Adjusted gross margin expanded by 90 basis points to 36.7%, attributed to productivity gains [7] - Organic sales increased by 1%, driven by a 1% rise in pricing, particularly in hyperinflationary economies like Argentina [5][6] - In North America, organic sales fell by 1%, while Developing and Emerging markets saw an 8% increase in organic sales [6] Segment Performance - Personal Care segment sales were $2,635 million, down 2$1,539 million, with organic sales down 1% due to inventory reductions [9] - K-C Professional segment sales fell 10% to $767 million, impacted by unfavorable currency rates and divestitures [10] Future Outlook - Adjusted operating profit is projected to grow at a mid-to-high teens percentage rate on a constant currency basis in 2024 [12] - The consensus estimate for Kimberly-Clark has shifted downward by 7.63% in the past month, indicating a negative trend in estimates [13][14] - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16]