KMB to Report Q3 Earnings: Should You Expect a Beat This Time?

Core Insights - Kimberly-Clark Corporation (KMB) is expected to report a decline in both revenue and earnings for Q3 2025, with revenues estimated at $4.08 billion, reflecting a 17.6% decrease year-over-year [1] - The earnings consensus has dropped from $1.59 to $1.45, indicating a 20.8% decrease compared to the previous year [2] Factors Impacting Performance - The company faces a challenging operating environment, with softening demand in key international markets and economic pressures in emerging markets, including currency volatility and inflation [3] - Kimberly-Clark anticipates a nearly 100 basis point negative impact on net sales for the full year due to unfavorable currency rates, alongside a 290 basis point headwind from divestitures [4] - Operating profit growth is projected to be negatively impacted by approximately 100 basis points from currency translation, with earnings per share (EPS) expected to reflect a 150 basis point adverse impact [4] Margin and Cost Considerations - Margin performance may be strained due to ongoing cost pressures and increased brand investments, with advertising and promotional costs expected to rise to nearly 7% of sales in the second half of the year [5] - Despite these challenges, Kimberly-Clark's Powering Care strategy has led to 5.8% productivity savings in Q2, contributing to a multiyear savings target of $3 billion [6] Earnings Outlook - The current model does not predict an earnings beat for Kimberly-Clark, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -4.99% [7] - The company enters Q3 2025 earnings amid soft demand and a cautious retail environment, with external pressures likely impacting sales, margins, and EPS growth [9]