Core Points - Kimberly-Clark Corporation will establish an $800 million advanced manufacturing facility in Trumbull County, Ohio, creating 491 new high-quality jobs [1][4][11] - This facility will be Kimberly-Clark's first investment in Ohio and is part of a strategic expansion to enhance its operations in the American market [3][4] - The project received a 10-year Job Creation Tax Credit from the Ohio Tax Credit Authority, which was approved earlier this week [2] Company Overview - Kimberly-Clark is a leading manufacturer of personal care and hygiene products, with a portfolio that includes brands such as Huggies, Kleenex, and Scott, and operates in over 175 countries [6] - The new facility will span over one million square feet and is expected to serve approximately 117 million consumers in the Midwest and Northeast [4][6] Economic Impact - The investment is anticipated to have a long-term economic impact on the region, not only by creating direct jobs but also by attracting ancillary businesses and boosting local housing and economy [11][12] - The project is seen as a catalyst for regional revitalization and reflects Ohio's pro-business climate and commitment to workforce development [7][11] Collaboration and Support - The successful establishment of the facility is attributed to close collaboration among local, regional, and state partners, including JobsOhio and the Ohio Department of Development [8][10] - The site received $17.2 million from the All Ohio Future Fund to assist in site readiness and infrastructure development [5]

Kimberly-Clark (KMB) FY 2025 Annual General Meeting May 01, 2025 09:00 AM ET Speaker0 Hello, and welcome to the Annual Meeting of Stockholders of Kimberly Clark Corporation. Please note that today's meeting is being recorded. During the meeting, we'll have a question and answer session. You can submit questions or comments at any time by clicking on the Q and A tab. It is now my pleasure to turn today's meeting over to Mike Hsu, Chairman and CEO of Kimberly Clark. Mr. Hsu, the floor is yours. Speaker1 Good ...

Following my coverage on Kimberly-Clark (NYSE: KMB ) in Feb’24, which I upgraded to a hold rating as I believed the near-term weakness had already been priced in, this post is to provide an update on my thoughts on the businessI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensit ...

Core Insights - Kimberly-Clark Corporation reported weaker-than-expected first-quarter sales, with quarterly adjusted earnings per share at $1.93, surpassing the analyst consensus estimate of $1.89, while quarterly sales were $4.84 billion, down 6%, missing the expected $4.88 billion [1] - The company anticipates its 2025 Adjusted Operating Profit to be flat to positive on a constant-currency basis, a significant downgrade from the previous expectation of high single-digit growth [2] - Analysts have adjusted their price targets for Kimberly-Clark following the earnings announcement, reflecting a cautious outlook [3][7] Financial Performance - Quarterly adjusted earnings per share were $1.93, beating the consensus estimate of $1.89 [1] - Quarterly sales totaled $4.84 billion, a 6% decline compared to the previous year, missing the expected $4.88 billion [1] - The company expects a 200 basis point impact on reported net sales from currency translation, an improvement from the earlier estimate of 300 basis points [2] Strategic Outlook - The CEO indicated that the current environment will lead to greater costs across the global supply chain than initially expected [1] - The divestment of the PPE business and exit from the U.S. private label diaper segment is projected to negatively impact sales by an additional 240 basis points [2] Analyst Ratings - Evercore ISI Group maintained an Outperform rating but lowered the price target from $168 to $155 [7] - Piper Sandler also maintained an Overweight rating, reducing the price target from $158 to $156 [7] - RBC Capital kept an Outperform rating while lowering the price target from $165 to $162 [7]

Core Insights - Kimberly-Clark is recognized as a Dividend King, indicating strong cash flows that support reliable dividends and consistent growth in shareholder value [1] - The stock price has experienced fluctuations, with recent downswings followed by anticipated upswings, suggesting a sustainable uptrend [2][3] - The company is well-positioned in the personal care products industry, which is essential and regularly needed, contributing to solid cash flows [5] Financial Performance - In Q1, revenue decreased by 6% to $4.8 billion, slightly below consensus estimates, primarily due to divestitures, while organic contraction was only 1.6% [6] - The adjusted gross margin contracted by 20 basis points, but operating margin was less affected than analysts forecasted, aided by efficiency efforts [7] - Earnings declined by 4%, with free cash flow expected to be nearly $2 billion, indicating financial health [8][9] Capital Returns - Kimberly-Clark has a dividend yield of 3.66%, with an annual dividend of $5.04 and a 54-year track record of dividend increases [10] - Share repurchases reduced the share count by 1.5% in Q1, contributing to capital returns alongside dividends [10] Analyst Sentiment - Analysts maintain a consensus rating of Hold, with institutions owning approximately 75% of the stock, indicating strong institutional interest [11] - There is a forecasted upside of about 5% for the stock this year, with recent price target increases aligning with consensus [11] Market Trends - The stock is currently range-bound but shows signs of regaining a long-term uptrend, with support levels rising [12] - A retest of the all-time high is anticipated, with potential for new highs by the end of the year [12]

Group 1 - Kimberly-Clark's share price declined nearly 3% following an unwelcome change in guidance despite quarterly results that were not considered awful [1] - The company reported net sales of $4.84 billion for Q1 2025, a 6% decrease from Q1 2024, attributed to currency impacts and divestitures [2] - Non-GAAP adjusted net income fell by 4% year over year to $1.93 per share, with all three business segments experiencing declines in net sales [3] Group 2 - Kimberly-Clark cut its full-year guidance, now expecting adjusted earnings per share to be flat to slightly positive, with an anticipated $300 million in additional costs due to international trade disputes [4] - Previously, the company had expected profitability to rise by at least a mid-single-digit percentage rate [4] - The current trade situation is perceived as an excuse for the company's underperformance, indicating a need for more than just a stable trade environment to stimulate growth [5]

Core Insights - Kimberly-Clark Corporation reported first-quarter 2025 results with sales missing estimates but adjusted earnings per share exceeding expectations, both metrics showing a year-over-year decline [1][3][12] Financial Performance - Adjusted earnings were $1.93 per share, beating the Zacks Consensus Estimate of $1.89, but down 4% year over year due to reduced operating profit and net income from equity companies [3] - Sales totaled $4,840 million, a 6% decline from $5,149 million in the same period last year, and below the Zacks Consensus Estimate of $4,864 million [3] - Unfavorable foreign currency exchange rates negatively impacted sales by approximately 2.4%, alongside a 2% reduction from divestitures and business exits [3] Segment Performance - North America segment net sales were $2,666 million, down 3.9%, with organic sales decreasing 0.6% primarily due to unfavorable pricing [5] - International Personal Care segment net sales were $1,383 million, an 8.9% decline, with organic sales down 2.8% due to price investments [7] - International Family Care & Professional segment reported net sales of $791 million, a 7.7% decline, with organic sales decreasing 2.3% [9] Operational Metrics - Adjusted gross margin was 36.9%, reflecting a 20-basis point decrease [4] - Adjusted operating profit fell 6% to $844 million, impacted by currency translation [4] Financial Health - The company ended the quarter with cash and cash equivalents of $563 million, long-term debt of $6,481 million, and total stockholders' equity of $1,224 million [11] - Cash provided by operations was $327 million, with capital spending of $204 million, and $466 million returned to shareholders through dividends and share buybacks [11] Future Outlook - For 2025, Kimberly-Clark expects organic sales growth to exceed the market average, currently projected between 1.5% and 2% [12] - Net sales are anticipated to face a negative impact of approximately 200 basis points from currency translation and 240 basis points from divestitures [13] - Adjusted operating profit is now expected to be flat to positive on a constant-currency basis, with similar negative impacts from divestitures and currency rates [14]

Financial Performance - Net sales for the three months ended March 31, 2025, were $4.84 billion, a decline of 6.0% compared to $5.15 billion in 2024, primarily due to unfavorable currency impacts and divestitures[72]. - Gross profit decreased to $1.73 billion, down 9.3% year-over-year, with a gross margin of 35.8%, reflecting a 130 basis point decrease[72][76]. - Operating profit for the same period was $769 million, a decrease of 9.8%, with adjusted operating profit at $844 million, down 6.0% from $898 million in 2024[72][77]. - Net income attributable to Kimberly-Clark Corporation was $567 million, a decrease of 12.4%, with diluted earnings per share at $1.70, down 11.0% from $1.91[72][82]. - Organic sales decreased by 1.6%, driven by lower pricing, while volume and mix remained flat compared to the prior year[75]. - Adjusted earnings per share for the three months ended March 31, 2025, was $1.93, compared to $2.01 in the prior year[111]. Segment Performance - North America segment net sales were $2.67 billion, a decrease of 3.9%, with operating profit increasing by 1.3% to $676 million[87]. - Net sales for International Personal Care decreased by 8.9% to $1.4 billion, primarily due to unfavorable currency impacts of 6.0% and lower organic sales[89]. - Operating profit for International Personal Care fell by 19.8% to $194 million, mainly due to unfavorable pricing net of cost inflation and currency impacts[90]. - Net sales for International Family Care & Professional decreased by 7.7% to $791 million, driven by divestitures, unfavorable currency impacts, and lower organic sales[91]. - Operating profit for International Family Care & Professional decreased by 3.6% to $106 million, influenced by unfavorable pricing and currency impacts[92]. Cost and Savings Initiatives - The 2024 Transformation Initiative is expected to yield total pre-tax savings of $3.0 billion, with total costs anticipated to be approximately $1.5 billion pre-tax[69]. - Incremental costs due to new U.S. tariffs are estimated at approximately $300 million in 2025, primarily affecting the North America segment[66]. Cash Flow and Capital Expenditures - Cash provided by operations was $327 million, down from $438 million in the prior year, due to lower operating profit and unfavorable changes in working capital[93]. - Cash used for investing was $119 million, a decrease from $181 million in the prior year, with capital spending at $204 million compared to $194 million previously[94]. - The company anticipates full-year capital spending to be approximately $1.0 to $1.2 billion, including spending from the 2024 Transformation Initiative[94]. Taxation - The effective tax rate for the first quarter of 2025 was 23.8%, compared to 23.6% in 2024, with an adjusted effective tax rate of 21.4%[81]. - The effective tax rate as adjusted for the three months ended March 31, 2025, was 21.4%, compared to 23.6% in the prior year[112]. Debt Management - Total debt as of March 31, 2025, was $7.2 billion, down from $7.4 billion as of December 31, 2024[97]. Operational Realignment - The company has realigned its operations into three segments: North America, International Personal Care, and International Family Care and Professional, to enhance reporting and management efficiency[67].

Group 1 - Kimberly-Clark reported $4.84 billion in revenue for the quarter ended March 2025, a year-over-year decline of 6% [1] - The EPS for the same period was $1.93, down from $2.01 a year ago, with an EPS surprise of +2.12% compared to the consensus estimate of $1.89 [1] - The reported revenue was a surprise of -0.49% over the Zacks Consensus Estimate of $4.86 billion [1] Group 2 - Key metrics indicate that Kimberly-Clark's shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite's -8.9% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [3] Group 3 - Year-over-year changes in net price impact showed a decline of -0.6% versus an estimated -0.5% by analysts [4] - Organic net consolidated revenue decreased by -1.6%, compared to the average estimate of +0.7% [4] - Currency translation had a year-over-year change of -0.4%, slightly worse than the estimated -0.3% [4]

Group 1: Earnings Performance - Kimberly-Clark reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.89 per share, but down from $2.01 per share a year ago [1] - The earnings surprise was 2.12%, and the company matched expectations in the previous quarter with earnings of $1.50 per share [2] - Over the last four quarters, Kimberly-Clark has surpassed consensus EPS estimates three times [2] Group 2: Revenue Analysis - The company posted revenues of $4.84 billion for the quarter, missing the Zacks Consensus Estimate by 0.49%, and down from $5.15 billion year-over-year [3] - Kimberly-Clark has topped consensus revenue estimates only once in the last four quarters [3] Group 3: Stock Performance and Outlook - Kimberly-Clark shares have increased approximately 6.9% since the beginning of the year, contrasting with a -12.3% decline in the S&P 500 [4] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $1.88 for the upcoming quarter and $7.51 for the current fiscal year [8] - The Zacks Rank for Kimberly-Clark is 2 (Buy), indicating expected outperformance in the near future [7] Group 4: Industry Context - The Consumer Products - Staples industry, to which Kimberly-Clark belongs, is currently in the bottom 43% of over 250 Zacks industries, which may impact stock performance [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]