Kimberly-Clark shares fall on soft Q4 results, tepid 2025 outlook

Published 28/01/2025, 12:44
Kimberly-Clark shares fall on soft Q4 results, tepid 2025 outlook

Investing.com -- Kimberly-Clark Corporation (NYSE:KMB) reported fourth quarter 2024 results that fell short of analyst expectations, sending shares down 3.3% in response to the soft performance and cautious 2025 guidance.

The consumer products giant posted adjusted earnings per share of $1.50 for Q4, missing the analyst consensus of $1.51 by $0.01.

Revenue came in at $4.93 billion, surpassing estimates of $4.86 billion and representing a 2.3% YoY increase on an organic basis. However, net sales declined 0.8% compared to the same quarter last year.

Kimberly-Clark's gross margin improved to 35.4% on an adjusted basis, up 50 basis points from the prior year, driven by strong productivity gains. The company's operating profit rose 2.1% to $684 million on an adjusted basis.

CEO Mike Hsu commented, "2024 was a breakthrough year for Kimberly-Clark with the launch of our transformative, multi-year Powering Care strategy and successfully rewiring our organization into three powerhouse segments with world-class functional support."

Looking ahead to 2025, the company provided a tepid outlook, projecting adjusted earnings per share growth in the mid-to-high single-digit range on a constant-currency basis.

This guidance includes a negative 320 basis point impact from divestitures and business exits, as well as a 100 basis point headwind from items below operating profit.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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