- Kimberly-Clark’s organic sales growth for Q3 was 1%, below the estimate of 3.24%.
- Personal Care segment organic sales increased by 3%, short of the 5.04% estimate.
- Consumer Tissue segment saw a 1% decrease in organic sales, against an expected 0.8% increase.
- K-C Professional segment experienced a 1% decline in organic sales, compared to a 2.2% growth estimate.
- Adjusted EPS rose to $1.83, surpassing both the prior year’s $1.74 and the estimate of $1.70.
- Net sales totaled $4.95 billion, a 3.5% year-over-year decrease, and below the $5.05 billion estimate.
- Personal Care net sales were $2.64 billion, a 2.4% year-over-year decline, and slightly under the $2.67 billion estimate.
- Consumer Tissue net sales dropped 1.8% year-over-year to $1.54 billion, narrowly missing the $1.55 billion estimate.
- K-C Professional net sales fell 10% year-over-year to $767 million, compared to the $797.7 million expectation.
- Corporate & Other net sales remained at $11 million, matching the previous year, but below the $11.4 million forecast.
- Overall net sales volume remained flat, contrary to a 1% growth forecast.
- Personal Care and Consumer Tissue net sales volumes remained unchanged, falling short of their respective estimates of 1.31% and 0.97% growth.
- K-C Professional net sales volume declined by 1%, missing the 1.2% growth estimate.
- For the year, Kimberly-Clark anticipates organic sales growth of 3% to 4%, lower than the 4.25% estimate.
- Adjusted Operating Profit and Adjusted EPS are projected to grow at a mid-to-high teens percentage rate on a constant-currency basis.
- Reported net sales are expected to take a hit from currency translation (400 basis points) and divestitures (120 basis points).
- Volume and mix in developed markets such as Australia, South Korea, and Western/Central Europe were positive, offset by declines in North America, while developing and emerging markets remained stable compared to the previous year.
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Kimberly Clark on Smartkarma
Analyst coverage of Kimberly Clark on Smartkarma by Baptista Research delves into the company’s strategic endeavors and market-specific challenges. The analysis highlights Kimberly-Clark’s emphasis on driving volume and mix-driven gains, especially in key markets like the U.S., China, and the U.K. This focus aligns with the company’s innovation-led growth strategy aimed at revitalizing its “Powerhouse” categories to meet changing market demands and consumer preferences. Baptista Research also aims to evaluate various factors that could impact the company’s stock price in the near future, conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.
In another report by Baptista Research on Kimberly Clark, the focus is on the company’s new operating model and its potential impact on the bottom-line. The analysis highlights Kimberly-Clark’s optimistic performance in the first quarter of 2024, driven by its strategy to enhance categories through breakthrough innovation and market expansion. This approach enables the company to navigate effectively through the evolving external dynamics of today’s business environment, leading to notable improvements in volume. The company also expresses confidence in the underlying volume momentum in its business, reflecting a positive outlook for Kimberly-Clark’s future prospects.
A look at Kimberly Clark Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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, tissues, and paper towels, has a promising long-term outlook based on its Smartkarma Smart Scores. With a strong dividend score of 4 and robust momentum score of 4, Kimberly Clark demonstrates solid performance in these areas. Investors looking for stable returns and a company showing positive market trends may find Kimberly Clark appealing.
While the company’s value and resilience scores are not as high, with scores of 2 and 2 respectively, its growth score of 3 indicates potential for expansion and development. Overall, Kimberly-Clark’s diverse product range and global presence position it well for future growth, despite some areas for improvement highlighted by the Smart Scores. Investors seeking a company with a proven track record in dividends and market momentum may see Kimberly-Clark as a sound long-term investment.
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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