Examining the Future: Kimberly-Clark's Earnings Outlook
Kimberly-Clark (NYSE:KMB) is preparing to release its quarterly earnings on Friday, 2025-08-01. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Kimberly-Clark to report an earnings per share (EPS) of $1.67.
Anticipation surrounds Kimberly-Clark's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.04, leading to a 3.28% drop in the share price on the subsequent day.
Here's a look at Kimberly-Clark's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.89 | 1.51 | 1.70 | 1.71 |
| EPS Actual | 1.93 | 1.50 | 1.83 | 1.96 |
| Price Change % | -3.0% | 0.0% | -1.0% | 3.0% |
Kimberly-Clark Share Price Analysis
Shares of Kimberly-Clark were trading at $125.29 as of July 30. Over the last 52-week period, shares are down 10.46%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analyst Insights on Kimberly-Clark
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Kimberly-Clark.
A total of 4 analyst ratings have been received for Kimberly-Clark, with the consensus rating being Neutral. The average one-year price target stands at $135.5, suggesting a potential 8.15% upside.
Peer Ratings Comparison
The below comparison of the analyst ratings and average 1-year price targets of Church & Dwight Co, Colgate-Palmolive and Reynolds Consumer Prods, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Church & Dwight Co, with an average 1-year price target of $102.0, suggesting a potential 18.59% downside.
- Analysts currently favor an Buy trajectory for Colgate-Palmolive, with an average 1-year price target of $97.33, suggesting a potential 22.32% downside.
- Analysts currently favor an Neutral trajectory for Reynolds Consumer Prods, with an average 1-year price target of $23.0, suggesting a potential 81.64% downside.
Peer Metrics Summary
The peer analysis summary presents essential metrics for Church & Dwight Co, Colgate-Palmolive and Reynolds Consumer Prods, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Kimberly-Clark | Neutral | -6.00% | $1.73B | 58.42% |
| Church & Dwight Co | Neutral | -2.41% | $659.60M | 4.94% |
| Colgate-Palmolive | Buy | -3.04% | $2.99B | 240.00% |
| Reynolds Consumer Prods | Neutral | -1.80% | $189M | 1.45% |
Key Takeaway:
Kimberly-Clark ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the top for return on equity.
Discovering Kimberly-Clark: A Closer Look
With more than half of its sales from personal care and another third from consumer tissue products, Kimberly-Clark is a leading manufacturer in the tissue and hygiene realm. Its brand mix includes Huggies, PullUps, Kotex, Depend, Kleenex, and Cottonelle. The firm also operates in the professional segment, partnering with businesses to provide safety and sanitary offerings for the workplace. Kimberly-Clark generates just over half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.
Kimberly-Clark's Financial Performance
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Decline in Revenue: Over the 3 months period, Kimberly-Clark faced challenges, resulting in a decline of approximately -6.0% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.
Net Margin: Kimberly-Clark's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 11.71% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Kimberly-Clark's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 58.42% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Kimberly-Clark's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.45%, the company showcases efficient use of assets and strong financial health.
Debt Management: Kimberly-Clark's debt-to-equity ratio surpasses industry norms, standing at 6.58. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Kimberly-Clark visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
