Earnings Alerts

Kimberly Clark (KMB) Earnings: 1Q Organic Sales Fall Short of Estimates Despite Strong EPS Performance

  • Kimberly-Clark’s first-quarter organic sales decreased by 1.6%, falling short of the anticipated 1.4% increase.
  • The company reported adjusted earnings per share (EPS) of $1.93, slightly down from $2.01 in the previous year, but above the estimate of $1.90.
  • Net sales amounted to $4.84 billion, reflecting a 6% year-over-year decrease and slightly lower than the projected $4.9 billion.
  • North American net sales stood at $2.71 billion.
  • Net sales volume changed by -0.2%, which was below the expected increase of 0.53%.
  • International Personal Care net sales reached $1.42 billion.
  • Net sales for International Family Care and Professional sectors were $809 million.
  • The CEO anticipates higher costs across the global supply chain than initially expected for the year.
  • Despite increased costs, the CEO remains confident in the company’s ability to offset them over time.
  • Full-year adjusted earnings per share are now expected to be flat to positive, on a constant-currency basis.
  • The company now projects the full-year adjusted operating profit to be flat to positive, a revision from the previous forecast of high single-digit growth.
  • Kimberly-Clark anticipates a full-year adjusted free cash flow of around $2 billion, revised down from the earlier expectation of more than $2 billion.

Kimberly Clark on Smartkarma

On Smartkarma, independent analysts like Baptista Research are covering Kimberly Clark, providing valuable insights into the company’s performance and future prospects. In their research reports, including “Kimberly-Clark: Market Focus & Expansion Strategies As A Primary Growth Accelerator!” and “Kimberly-Clark Corporation: Strategic Growth Plan Leveraging Major Brands & New Market Initiatives!”, Baptista Research highlights key elements such as the company’s Powering Care transformation strategy. This strategy aims to optimize growth and efficiency by restructuring the organization into three main segments, fostering volume and mix-driven growth to expand ahead of its market categories.


A look at Kimberly Clark Smart Scores

FactorScoreMagnitude
Value2
Dividend4
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.6

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 manufacturing consumer products such as diapers, tissues, and paper towels, has received positive Smartkarma Smart Scores across various factors. With a high score of 5 in Momentum, the company is showing strong positive price trends that investors may find appealing. Additionally, Kimberly-Clark scored well in Dividend and Growth with scores of 4, indicating a stable outlook for both dividend payments and potential for growth in the future. The company’s focus on resilience, scoring a 3, further reinforces its ability to withstand economic challenges. However, there is room for improvement in terms of the Value factor, where Kimberly-Clark scored a 2.

Looking ahead, while Kimberly-Clark demonstrates strong momentum and promising growth and dividend potential, investors may consider closely monitoring developments in the company’s valuation to ensure that they are acquiring shares at an attractive price. With its wide range of consumer products sold globally, Kimberly-Clark remains a key player in the health and hygiene sector, positioning it well for long-term success in the market.


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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