
- Kimberly-Clark’s first-quarter adjusted earnings per share (EPS) was $1.93, beating the estimate of $1.90.
- Organic sales decreased by 1.6%, missing the estimate of a 1.4% increase.
- North America is expected to face significant pressure on operating profit across all segments this year.
- The company projects international personal care will lead volume and mix-driven organic growth beyond category growth.
- Sustained operating profit gains are anticipated, driven by strong productivity and overhead efficiencies.
- The adjusted EPS outlook for the full year is revised to be flat to positive, rather than the previous expectation of mid-to-high single-digit growth.
- Tariffs are projected to increase costs by an additional $300 million this year.
- Kimberly-Clark reassessed its cost base due to geopolitical changes and now expects 2025 Adjusted Operating Profit to be flat to positive, rather than high single-digit growth.
- Adjusted Free Cash Flow for 2025 is now expected to be approximately $2 billion, down from an earlier forecast of more than $2 billion.
- CEO Hsu expressed confidence in offsetting costs over time and unlocking long-term potential despite rising global supply chain costs.
- Analyst ratings for the company include 6 buys, 13 holds, and 2 sells.
Kimberly Clark on Smartkarma
Analysts on Smartkarma, like Baptista Research, are actively covering Kimberly-Clark, a company that recently reported its fourth-quarter and full-year 2024 results. Baptista Research highlighted key elements that shed light on the company’s current position and future prospects. Kimberly-Clark unveiled its Powering Care transformation strategy aimed at optimizing growth and efficiency through restructuring into three main segments. This strategic move is expected to fuel volume and mix-driven growth, positioning the company for expansion in its market categories.
Further analysis by Baptista Research delves into Kimberly-Clark’s performance in the third quarter of 2024, showcasing strategic advancements amid challenges. CEO Mike Hsu emphasized the success of the Powering Care strategy, intended to establish Kimberly-Clark as a global leader in its sectors. This strategy emphasizes innovation, productivity optimization to support growth, and organizational restructuring for enhanced efficiency and competitiveness. The sentiment among analysts leans towards bullish, emphasizing the positive growth trajectory Kimberly-Clark is embarking on.
A look at Kimberly Clark Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Kimberly-Clark Corporation, a global health and hygiene company known for its consumer products like diapers and tissues, has received a positive long-term outlook based on Smartkarma Smart Scores. The company scored high in Dividend and Growth, indicating strong potential for returns and expansion. Additionally, Kimberly-Clark scored well in Momentum, showcasing its current market performance. While Value and Resilience scores were lower, the company’s overall outlook appears promising with its strengths in dividends, growth, and market momentum.
Kimberly-Clark’s focus on producing essential health and hygiene products, such as paper towels and surgical gowns, has contributed to its resilience score. With products sold globally, the company’s ability to adapt to changing market dynamics and maintain a strong dividend payout has been recognized in its Smartkarma Smart Scores. Investors looking for a company with a solid dividend profile, growth potential, and market momentum may find Kimberly-Clark a favorable long-term investment option based on the scores provided.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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