- Projected Earnings Decline: Analysts estimate a 6% decline in EPS to $1.89 for Q1 2025, with revenue expected to decrease by 5.5% to $4.9 billion.
- Financial Ratios: KMB shows a P/E ratio of 18.72 and a P/S ratio of 2.36, but a high debt-to-equity ratio of 7.77 raises leverage concerns.
- Potential for Earnings Surprise: Despite challenges, Kimberly-Clark’s history of an average earnings surprise of 12.5% could signal potential outperformance.
Kimberly-Clark Corporation (NYSE:KMB) is a global leader in the personal care and consumer products industry, known for its popular brands like Huggies, Kleenex, and Scott. Operating in over 175 countries, the company provides essential products that meet everyday needs. As it prepares to release its first-quarter 2025 earnings, analysts are closely watching its financial performance.
The company is set to announce its quarterly earnings on April 22, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $1.89. This figure reflects a 6% decline from the previous year, as highlighted by Zacks Investment Research. The revenue for the quarter is projected to be approximately $4.9 billion, marking a 5.5% decrease from the same quarter last year.
Kimberly-Clark faces challenges such as soft demand, retail destocking, and input cost inflation, which are impacting its key segments. Despite these hurdles, the company has previously delivered an average earnings surprise of 12.5% over the last four quarters. This track record suggests that Kimberly-Clark might still outperform expectations, potentially influencing its stock price positively.
The company’s financial metrics reveal a price-to-earnings (P/E) ratio of 18.72 and a price-to-sales ratio of 2.36, indicating how the market values its earnings and sales. However, a high debt-to-equity ratio of 7.77 suggests significant leverage, which could pose risks if earnings continue to decline. The current ratio of 0.80 indicates a limited ability to cover short-term liabilities with short-term assets.
Kimberly-Clark’s management will host a live Q&A session with analysts following the earnings release. This discussion will be crucial in understanding the sustainability of any immediate price changes and future earnings expectations. Investors will be keen to hear how the company plans to navigate the complex consumer and retail landscape moving forward.
