Kimberly-Clark Faces Market Challenges Despite Solid Q1 Earnings
With a market cap of $44.3 billion, Kimberly-Clark Corporation (KMB) stands as a global leader in personal care and tissue product manufacturing. The company operates through distinct business segments, catering to both consumer and professional markets. Notably, its well-known brands include Huggies, Kotex, Kleenex, Scott, and Depend.
Stock Performance Overview
Over the past 52 weeks, shares of the Dallas, Texas-based company have lagged behind the broader market. During this period, KMB has declined 1.2%, while the S&P 500 Index ($SPX) has gained 12.3%. However, on a year-to-date basis, Kimberly-Clark’s shares are up 1.9%, slightly outperforming SPX’s minimal rise.
Comparative Sector Analysis
When narrowing the focus, the consumer products maker has also underperformed compared to the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.9% return over the last 52 weeks.
Recent Earnings Report
Despite posting better-than-expected Q1 2025 adjusted EPS of $1.93, KMB shares fell 1.5% on April 22. Revenue reached $4.8 billion, missing projections and declining 6% year-over-year. Each business segment reported sales declines, with International Personal Care down nearly 9% to $1.4 billion and North America falling 3.9% to $2.7 billion. Furthermore, the company adjusted its 2025 outlook, now anticipating flat to slightly positive EPS growth, down from previous mid-single-digit growth expectations. This revision accounts for an additional $300 million in costs arising from trade disputes.
Analyst Expectations
For the fiscal year ending December 2025, analysts project KMB’s adjusted EPS to decline 2.9% year-over-year to $7.09. However, the company’s earnings surprise history is encouraging, as it has met or exceeded consensus estimates in the last four quarters.
Among the 20 analysts covering the stock, the consensus rating sits at a “Hold.” This recommendation comprises five “Strong Buy” ratings, one “Moderate Buy,” 12 “Holds,” and two “Strong Sells.”
Price Targets and Market Outlook
On April 24, Barclays lowered Kimberly-Clark’s price target to $135 while maintaining an “Equal Weight” rating due to concerns about guidance, despite the ongoing efforts to mitigate tariff impacts.
Currently, KMB trades below the mean price target of $142.16. The highest price target on the Street is $162, suggesting a potential upside of 21.3% from the current price.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
