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Kimberly-Clark Gears Up for Q1 Earnings: Key Factors to Note

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Kimberly-Clark Corporation (KMB - Free Report) is likely to register top and bottom-line declines when it reports first-quarter 2025 earnings on April 22. The Zacks Consensus Estimate for revenues is pegged at $4.9 billion. The figure indicates a 5.5% decrease from the year-ago quarter. 

The Zacks Consensus Estimate for quarterly earnings has moved down by 2 cents in the past 30 days to $1.89 per share, indicating a dip of 6% from the year-ago quarter’s reported figure. KMB delivered a trailing four-quarter earnings surprise of 12.5%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Kimberly-Clark Corporation Price, Consensus and EPS Surprise

Kimberly-Clark Corporation Price, Consensus and EPS Surprise

Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation Quote

Things to Know About KMB’s Upcoming Results

Kimberly-Clark is navigating a dynamic consumer and retail environment, where soft demand and ongoing retail inventory reductions have been weighing on its performance. As a result, our model expects sales decline of 0.9%, 12.5% and 8.8% from North America, International Personal Care and International Family Care & Professional segments, respectively, in the to-be-reported quarter.

Kimberly-Clark’s exit from private label creates a near-term revenue headwind, as strategic pullbacks are likely to have put pressure on the top line. In addition, the lingering effects of retailer destocking are likely to have dampened shipment volumes, adding to transitional challenges. 

Cost pressures remain elevated, with higher pulp prices and limited pricing flexibility compressing margins. Our model expects first-quarter fiscal 2025 adjusted gross profit of $1,801.3 million, down from $1,911 million reported in the year-ago quarter. 

Yet, Kimberly-Clark is on track with its Powering Care Strategy, which focuses on growth, operational efficiency and organizational alignment. Gains from volume-and-mix-led growth model, supported by innovation and increased adoption of premium products, are likely to have offered some respite in the to-be-reported quarter’s performance.

What the Zacks Model Predicts for KMB

Our proven model does not conclusively predict an earnings beat for Kimberly-Clark this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

Kimberly-Clark has a Zacks Rank #2 and an Earnings ESP of -0.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) currently has an Earnings ESP of +2.09% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first quarter fiscal 2025 earnings per share (EPS) is pegged at 91 cents, which implies a 7.1% increase year over year. The Zacks Consensus Estimate for BJ's Wholesale Club’s quarterly revenues is pegged at $5.2 billion, which indicates growth of 5.3% from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 12%, on average.

Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +2.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at 85 cents, which implies a 37.1% increase year over year.

The Zacks Consensus Estimate for Tyson Foods’ quarterly revenues is pegged at $13.1 billion, which indicates growth of 0.2% from the figure reported in the prior-year quarter. TSN delivered a trailing four-quarter earnings surprise of 52%, on average.

Freshpet, Inc. (FRPT - Free Report) currently has an Earnings ESP of +2.56% and a Zacks Rank of 3. The Zacks Consensus Estimate for first quarter 2025 EPS is pegged at 13 cents, which implies a 38.1% decrease year over year.

The Zacks Consensus Estimate for Freshpet’s quarterly revenues is pegged at $262.3 million, which indicates growth of 17.2% from the figure reported in the prior-year quarter. FRPT delivered a trailing four-quarter earnings surprise of 78.8%, on average.


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