Kimberly-Clark Analysts Slash Their Forecasts Following Weak Sales

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]