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

Kimberly-Clark (NASDAQ:KMB) announced its quarterly earnings results on Tuesday. The company reported $1.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.21), Zacks reports. The business 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 firm’s revenue for the quarter was up .6% on a year-over-year basis. During the same period last year, the company earned $1.92 EPS.

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 Up 0.6%

Shares of Kimberly-Clark stock traded up $0.64 during trading hours on Tuesday, hitting $108.19. 2,230,895 shares of the company’s stock traded hands, compared to its average volume of 5,046,539. The stock has a 50 day simple moving average of $105.93 and a 200-day simple moving average of $102.55. The company has a quick ratio of 0.55, a current ratio of 0.77 and a debt-to-equity ratio of 3.38. The company has a market cap of $35.91 billion, a PE ratio of 16.96, a PEG ratio of 4.90 and a beta of 0.26. Kimberly-Clark has a twelve month low of $92.42 and a twelve month high of $137.46.

Kimberly-Clark Dividend Announcement

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

Insider Activity at Kimberly-Clark

In other Kimberly-Clark news, VP Andrew Scribner sold 4,095 shares of Kimberly-Clark stock in a transaction that occurred on 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 filing with the SEC, which is available through this link. Company insiders own 0.75% of the company’s stock.

Hedge Funds Weigh In On Kimberly-Clark

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp raised its holdings in Kimberly-Clark by 1.4% in the fourth quarter. State Street Corp now owns 21,125,118 shares of the company’s stock valued at $2,157,746,000 after acquiring an additional 294,228 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in Kimberly-Clark by 2.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,917,154 shares of the company’s stock worth $1,202,322,000 after acquiring an additional 299,382 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Kimberly-Clark by 26,997.7% in the 4th quarter. Wellington Management Group LLP now owns 7,368,407 shares of the company’s stock worth $743,399,000 after purchasing an additional 7,341,215 shares during the last quarter. Northern Trust Corp raised its stake in shares of Kimberly-Clark by 0.3% in the 3rd quarter. Northern Trust Corp now owns 3,890,193 shares of the company’s stock valued at $483,707,000 after purchasing an additional 9,951 shares in the last quarter. Finally, Wells Fargo & Company MN raised its stake in shares of Kimberly-Clark by 14.1% in the 4th quarter. Wells Fargo & Company MN now owns 2,472,279 shares of the company’s stock valued at $249,428,000 after purchasing an additional 305,060 shares in the last quarter. 76.29% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently commented on KMB. Bank of America decreased their price objective on Kimberly-Clark from $130.00 to $120.00 and set a “buy” rating on the stock in a research note on Friday, April 10th. Wells Fargo & Company upped their price objective on Kimberly-Clark from $100.00 to $110.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 8th. Piper Sandler lifted their price objective on Kimberly-Clark from $115.00 to $121.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Barclays boosted their target price on Kimberly-Clark from $101.00 to $115.00 and gave the stock an “equal weight” rating in a report on Tuesday, July 21st. Finally, Weiss Ratings upgraded shares of Kimberly-Clark from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $117.93.

Kimberly-Clark News Roundup

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

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.