Kimberly-Clark’s Mixed Earnings Report Sparks Investor Concerns

With a market cap of $44.6 billion, Kimberly-Clark Corporation (KMB) stands as a powerhouse in personal care and consumer tissue products. Based in Dallas, Texas, this company serves over 175 countries and boasts popular brands like Huggies, Kleenex, Kotex, and Scott.

Underperformance Compared to Market Indices

Over the past year, KMB shares have struggled, lagging behind the wider market. The stock increased just 14.2% in the last 52 weeks, while the S&P 500 Index ($SPX) gained 23.5%. In the current year, KMB is up 3.3%, compared to SPX’s 4% gain.

In comparison with the Consumer Staples Select Sector SPDR Fund’s (XLP) performance, KMB managed to outperform with its 14.2% increase over the past year. However, it failed to keep pace in 2025, where it only slightly underperformed XLP’s 3.6% gains.

Q4 Earnings Report: Key Figures and Margins

On Jan. 28, shares of KMB dropped 1.5% following the release of its Q4 earnings report. The company reported revenue of $4.93 billion, just above analyst expectations of $4.86 billion but unchanged from the previous year. Adjusted EBITDA reached $896 million, exceeding the forecast of $887.1 million, leading to an 18.2% margin. However, the operating margin fell to 11.1% compared to the 13.5% recorded a year earlier, and free cash flow margin decreased to 12.3% from 20.1% in Q4 2023.

Analyst Predictions and Stock Ratings

For the fiscal year 2025 ending in December, analysts project Kimberly-Clark’s EPS to increase by 2.9% annually, reaching $7.51. The company has a strong history of meeting or beating earnings estimates, achieving EPS of $1.50 in the last reported quarter, in line with analyst expectations.

KMB stock is currently rated as a consensus “Hold,” a downgrade from its previous “Moderate Buy” rating two months ago. Out of 19 analysts, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” 11 advocate a “Hold,” and two recommend “Strong Sells.”

Price Target Insights

On Jan. 30, Barclays (BCS) analyst Lauren Lieberman increased Kimberly-Clark’s price target from $132 to $139 but maintained an “Equal-Weight” rating. The mean price target for KMB stands at $142.83, suggesting a 5.5% upside from the current price. The highest target among analysts is $168, indicating a potential 24.1% upside.

On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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