Kimberly-Clark(US:KMB) Benzinga·2026-01-27 15:37Core Insights - Kimberly-Clark Corporation reported a stronger-than-expected quarter, driven by solid execution and expanding profit momentum despite sales pressure from changes in the U.S. diaper business [1][3] Financial Performance - The company reported fourth-quarter adjusted earnings per share of $1.86, exceeding the analyst consensus estimate of $1.81 [3] - Quarterly sales were $4.08 billion, slightly missing the expected $4.09 billion, with revenues down by 0.6% and organic sales growth of 2.1% [3] - Gross margin was 35.9%, with an adjusted gross margin of 37%, consistent with the prior year [4] - Adjusted operating profit increased to $629 million, a rise of 13.1% from the previous year, attributed to strong productivity gains and reduced planned spending [4] Strategic Initiatives - The company is making significant progress in various international markets, including Australia, Brazil, and South Korea [5] - The acquisition of Kenvue is viewed as a transformative step that will enhance the company's momentum and improve care standards globally [5] Cash and Dividend - Kimberly-Clark ended the quarter with cash and equivalents totaling $688 million and inventories of $1.475 billion [6] - The company announced an increase in its quarterly dividend to $1.28 per share, up from $1.26, payable on April 2, 2026 [7] 2026 Outlook - The company anticipates reported net sales to be impacted by approximately a 50-basis-point decline due to exiting the U.S. private-label diaper business [8] - Forecasts indicate mid- to high-single-digit adjusted operating profit growth on a constant-currency basis [8] - Expected double-digit adjusted EPS growth from continuing operations is projected, driven by increased equity-company income and stable net interest expense [9]