Kimberly-Clark Corporation (KMB), based in Dallas, Texas, is a global leader in health and hygiene. The company produces personal care and consumer tissue products, serving both domestic and international markets with a market capitalization of $43.7 billion. It is expected to release its Q4 earnings on Wednesday, Jan. 22.
Ahead of the event, analysts expect Kimberly-Clark to report a profit of $1.49 per share, down 1.3% from $1.51 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections in three of the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter exceeded the consensus estimates by 8.3%.
For fiscal 2024, analysts expect Kimberly-Clark to report an adjusted EPS of $7.31, up 11.3% from $6.57 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 3.6% year-over-year to $7.57.
KMB has gained 6.8% over the past year, lagging behind the S&P 500 Index’s ($SPX) 23.7% gains, and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.6% returns during the same time frame.
Over the past year, Kimberly-Clark’s market momentum has been hampered by a consumer shift to cheaper alternatives, unfavorable currency exchange rates, and the July 2024 divestiture of its K-C Professional Personal Protective Equipment business, prompting a downward revision of its full-year sales forecast.
On Oct. 22, shares of KMB plunged 4.5% after it announced its Q3 earnings report. Its adjusted profit of $1.83 per share surpassed Street’s projections, but revenue of $4.95 billion fell short of market expectations.
The consensus opinion on KMB stock is reasonably bullish, with an overall “Moderate Buy.” Out of the 19 analysts covering the stock, six recommend “Strong Buy,” one advises “Moderate Buy,” 10 suggest “Hold,” and two advocate a “Strong Sell” rating.
The mean price target of $149 suggests a potential upside of 14.1% from current price levels.
