Kimberly-Clark (NASDAQ:KMB) Announces Quarterly Earnings Results, Misses Expectations By $0.21 EPS

Kimberly-Clark (NASDAQ:KMB) released its quarterly earnings results on Tuesday. The company reported $1.80 EPS for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.21), Zacks reports. The company had revenue of $4.19 billion during the quarter, compared to analysts’ expectations of $4.22 billion. Kimberly-Clark had a net margin of 12.80% and a return on equity of 152.79%. The company’s quarterly revenue was up .6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.92 earnings per share.

Here are the key takeaways from Kimberly-Clark’s conference call:

• Kimberly-Clark lowered its full-year outlook after second-quarter organic sales fell below expectations, primarily due to a China diaper disruption, North American retailer inventory reductions, softer category growth, and other one-time costs.
• Adjusted operating profit and EPS exceeded expectations, supported by a $45 million North American tariff refund and strong 6.4% gross productivity, which more than offset higher brand investment and other pressures.
• The company expects China to remain a significant headwind in the second half, estimating roughly 200 basis points of sales impact and about $70 million of operating-profit pressure, while assuming only modest recovery and no near-term inflection.
• Management expressed confidence in the long-term Kenvue combination, citing strong progress toward the previously announced $1.9 billion cost-synergy target, while cautioning that it is too early to provide a specific 2027 outlook.
• Kimberly-Clark highlighted its new alternative natural-fiber platform, the Arbex joint venture with Suzano, and a strong innovation pipeline as potential long-term drivers of improved product performance, lower fiber-cost volatility, margin expansion, and growth.

Kimberly-Clark Stock Performance

Shares of NASDAQ:KMB traded up $0.34 during midday trading on Tuesday, reaching $107.90. 1,880,778 shares of the company traded hands, compared to its average volume of 5,044,368. The company has a quick ratio of 0.55, a current ratio of 0.77 and a debt-to-equity ratio of 3.38. Kimberly-Clark has a 12 month low of $92.42 and a 12 month high of $137.46. The firm has a market capitalization of $35.82 billion, a price-to-earnings ratio of 16.96, a price-to-earnings-growth ratio of 4.90 and a beta of 0.26. The firm’s fifty day moving average price is $105.93 and its two-hundred day moving average price is $102.55.

Kimberly-Clark Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 4th will be given a $1.28 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.12 annualized dividend and a dividend yield of 4.7%. Kimberly-Clark’s payout ratio is 80.38%.

Insider Buying and Selling

In other Kimberly-Clark news, VP Andrew Scribner sold 4,095 shares of Kimberly-Clark stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $98.00, for a total transaction of $401,310.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 0.75% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kimberly-Clark

Large investors have recently modified their holdings of the company. Sunbelt Securities Inc. increased its holdings in shares of Kimberly-Clark by 12.8% in the fourth quarter. Sunbelt Securities Inc. now owns 7,474 shares of the company’s stock worth $754,000 after purchasing an additional 848 shares during the period. Corient Private Wealth LLC grew its position in Kimberly-Clark by 17.6% during the fourth quarter. Corient Private Wealth LLC now owns 308,727 shares of the company’s stock worth $31,147,000 after buying an additional 46,225 shares in the last quarter. CrossGen Wealth LLC purchased a new position in Kimberly-Clark during the fourth quarter worth about $27,000. Strive Financial Group LLC bought a new position in Kimberly-Clark in the 4th quarter worth about $172,000. Finally, Ameriflex Group Inc. raised its holdings in shares of Kimberly-Clark by 105.8% in the 4th quarter. Ameriflex Group Inc. now owns 885 shares of the company’s stock valued at $89,000 after acquiring an additional 455 shares in the last quarter. 76.29% of the stock is currently owned by institutional investors.

Trending Headlines about Kimberly-Clark

Here are the key news stories impacting Kimberly-Clark this week:

• Positive Sentiment: Adjusted second-quarter earnings per share were $1.80, while adjusted operating profit increased 6.2% year over year. Productivity savings, volume-and-mix gains and expanded gross margins helped offset several unfavorable items. Kimberly-Clark Q2 earnings report
• Positive Sentiment: Kimberly-Clark maintained momentum in its broader business, with second-quarter net sales of approximately $4.2 billion, up 0.6% from a year earlier, and first-half sales growth of 1.6%. The planned Kenvue acquisition remains on track to close by year-end. Kimberly-Clark second-quarter results
• Positive Sentiment: The board declared a regular quarterly dividend of $1.28 per share, payable October 2 to shareholders of record September 4. Kimberly-Clark dividend announcement
• Neutral Sentiment: The company unveiled a patented, plant-based fiber platform intended to develop more sustainable materials for hygiene and paper products. The initiative could support long-term cost, innovation and sustainability goals, but its financial impact is not yet clear. Kimberly-Clark alternative fiber program
• Negative Sentiment: Kimberly-Clark cut its 2026 sales and profit forecasts, now expecting organic sales growth to run about 100 basis points below weighted-average category growth. Net income fell 32.2% year over year, and revenue missed expectations. Reuters Kimberly-Clark forecast report
• Negative Sentiment: The China controversy is the primary near-term overhang. A state-run newspaper alleged that Huggies diapers contained formamide, while Kimberly-Clark said the claims were false; the resulting social-media firestorm nevertheless disrupted consumer demand. Huggies China quality allegations

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. UBS Group upped their target price on Kimberly-Clark from $106.00 to $115.00 and gave the company a “neutral” rating in a report on Thursday, July 16th. Wells Fargo & Company upped their price objective on Kimberly-Clark from $100.00 to $110.00 and gave the company an “equal weight” rating in a research note on Wednesday, July 8th. Piper Sandler lifted their target price on Kimberly-Clark from $115.00 to $121.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. Barclays boosted their price target on shares of Kimberly-Clark from $101.00 to $115.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 21st. Finally, Bank of America reduced their price target on shares of Kimberly-Clark from $130.00 to $120.00 and set a “buy” rating for the company in a research report on Friday, April 10th. Four analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $117.93.

Kimberly-Clark Company Profile

Kimberly-Clark Corporation is a U.S.-based multinational manufacturer of personal care and consumer tissue products. The company develops, produces and markets a range of consumer brands and professional products, including facial and bathroom tissues, disposable diapers and training pants, feminine care, incontinence products and workplace hygiene solutions. Known for consumer-facing names such as Kleenex, Huggies, Kotex, Cottonelle and Scott, as well as professional offerings under Kimberly-Clark Professional and KleenGuard, the company supplies goods to retail, healthcare and institutional customers.

Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has expanded from its 19th-century paper-making roots into a global household and workplace products company.