Kimberly-Clark Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Earnings Beat: Kimberly-Clark reported a Q4 non-GAAP EPS of $1.86, exceeding expectations by $0.05, indicating stable profitability despite a slight revenue decline.
- Slight Revenue Decline: The company's Q4 revenue of $4.08 billion fell 0.5% year-over-year, missing estimates, reflecting intensified market competition and the impact of exiting the private label diaper business.
- Operating Profit Growth: Adjusted operating profit reached $629 million, up 13.1% year-over-year, demonstrating significant progress in cost control and efficiency improvements, which strengthens the foundation for future profitability.
- Positive Outlook: Adjusted EPS is expected to grow in double digits, driven by a 30% increase in income from equity companies, despite the negative impact from the exit of the private label business, showcasing the company's confidence in future performance.
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Analyst Views on KMB
Wall Street analysts forecast KMB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMB is 127.71 USD with a low forecast of 95.00 USD and a high forecast of 162.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
8 Hold
1 Sell
Moderate Buy
Current: 98.660
Low
95.00
Averages
127.71
High
162.00
Current: 98.660
Low
95.00
Averages
127.71
High
162.00
About KMB
Kimberly-Clark Corporation is a global company focused on delivering products and solutions that provide better care. The Company's segments include North America and International Personal Care. The North America segment consists of products encompassing each of its five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. International Personal Care segment consists of three core categories: Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. Its portfolio of brands includes Huggies, Kleenex, Scott, Kotex, Cottonelle, Depend, and Pull-Ups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kimberly-Clark and Kenvue Merger Approved by Shareholders
- Merger Approval: The merger between Kimberly-Clark (KMB) and Kenvue (KVUE) received overwhelming shareholder approval, with the transaction expected to close in the second half of 2026, marking a strategic consolidation of two major players in consumer health and personal care.
- Transaction Valuation: The cash-and-stock deal is valued at approximately $48.7 billion, with Kenvue shareholders set to receive $3.50 in cash plus 0.14625 shares of Kimberly-Clark per Kenvue share, ensuring shareholder interests are protected.
- Market Leadership: Post-merger, Kimberly-Clark shareholders will own about 54% of the combined entity, while Kenvue shareholders will hold approximately 46%, positioning the new company as a projected $32 billion leader in health and wellness, serving nearly half of the global population.
- Brand Integration Strategy: The merger combines Kimberly-Clark's tissue, baby, and personal care products with Kenvue's over-the-counter and consumer health brands, enhancing competitive strength in health, hygiene, and skincare markets.
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Kimberly-Clark's Acquisition of Kenvue Receives Shareholder Approval
- Shareholder Voting Results: Approximately 96% of Kimberly-Clark shareholders voted in favor of the acquisition of Kenvue at the Special Meeting, reflecting strong confidence in the merger and expected to enhance the company's leadership in global health and wellness.
- Transaction Timeline: The deal is anticipated to close in the second half of 2026, pending regulatory approvals and other customary conditions, with successful integration projected to create significant shareholder value and enhance market competitiveness.
- Integration Planning Progress: Kimberly-Clark and Kenvue leadership teams are actively collaborating on integration planning, aiming to accelerate innovation and expand brand influence, thereby enhancing customer satisfaction and loyalty.
- Optimistic Market Outlook: Kenvue's CEO stated that the merger will accelerate innovation and expand market reach, expected to provide more trusted brands to global consumers, further solidifying both companies' positions in the health and wellness sector.
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