NASDAQ$KMB

Kimberly-Clark Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Kimberly-Clark's Q1 2023 results showed net sales growth and significant margin improvements driven by the Revenue Growth Management program, leading to an increased EPS outlook for 2023.

Kimberly-Clark reported a strong start to 2023, with a 2% increase in net sales to $5.2 billion and a 5% increase in organic sales. The company's gross margin improved by 340 basis points, and diluted earnings per share increased by 8% to $1.67. The company raised its 2023 outlook for adjusted earnings per share growth.

  • Net sales increased by 2% to $5.2 billion, with organic sales up by 5%.
  • Gross margin improved by 340 basis points due to favorable net revenue realization offsetting inflation.
  • Diluted earnings per share rose by 8% to $1.67, and adjusted earnings per share increased by 24%.
  • The company raised its 2023 outlook for adjusted earnings per share growth to 6-10%.

Headline financials

Total Revenue

$5.2B

Previous: $5.1B+2.0%
EPS (adj)

$1.67

Previous: $1.35+23.7%
Organic Net Sales Growth

5.0%

Previous: 10.0%-50.0%
Free Cash Flow

$566M

Previous: $523M+8.2%
Net Income

$566M

Previous: $523M+8.2%
Operating Income

$787M

Previous: $693M+13.6%
Gross Profit

$1.73B

Previous: $1.52B+13.6%
Cash & Equivalents

$524M

Previous: $493M+6.3%
Total Assets

$18.2B

Previous: $18.7B-2.7%
Stock-Based Comp

$24M

Previous: $16M+50.0%

Revenue & EPS history

Kimberly-Clark · Revenue · Quarterly

$5.2B

Q1 2023+2%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company updated its full year expectations for 2023. Organic sales are expected to grow between 2% and 4%. EPS is expected to grow between 6% and 10%.

Tailwinds

  • Organic sales growth between 2% and 4%.
  • Operating profit up low double digits.
  • Input cost impact on operating profit between $(100) and $(200) million.
  • Effective tax rate between 23% and 25%.
  • Income from equity companies up vs. prior year.

Headwinds

  • FX impact on net sales (2)%.
  • Net sales growth between 0% and 2%.
  • FX impact on operating profit ($ million) $(300) - $(400).
  • Share repurchases ($ million) $100 - $150.
  • The outlook reflects assumptions subject to change given the high level of volatility in the macro environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.1%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+0.7%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+12.0%

Q1 2022

Best reaction

-7.8%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-0.6%+1.0%
Q4 2025-0.7%-1.1%+9.1%
Q3 2025+3.1%-13.8%-6.5%
Q2 2025+4.8%+9.7%+3.6%
Q1 2025-1.5%-6.0%-0.2%
Q4 2024-1.5%-1.1%+6.7%
Q3 2024-5.1%-6.0%-5.0%
Q2 2024-2.5%-1.6%+0.3%
Q1 2024+6.9%+4.9%+2.3%
Q4 2023-3.6%-2.9%-2.6%
Q3 2023-2.5%-4.1%+0.4%
Q2 2023-3.8%-4.9%-6.3%
Q1 2023+0.8%+1.7%-3.8%
Q4 2022-3.2%-4.2%-6.3%
Q3 2022+3.8%+7.3%+15.7%
Q2 2022-1.0%-1.2%-0.4%
Q1 2022+12.0%+9.7%+0.2%
Q4 2021-1.5%-1.4%-5.6%
Q3 2021+0.2%-2.7%+1.6%
Q2 2021+0.1%-0.0%+2.4%
Q1 2021-7.0%-7.6%-5.7%
Q4 2020+3.7%-0.1%-1.1%
Q3 2020-7.8%-9.2%-5.8%
Q2 2020+2.1%+4.5%+9.0%
Q1 2020+0.6%+0.6%+0.2%
Q4 2019-0.7%+0.3%-2.1%
Q3 2019-3.5%-3.6%-4.2%
Q2 2019+0.3%+2.2%+5.6%
Q1 2019+1.7%+1.8%+6.0%
Q4 2018-3.3%-6.2%+3.4%
Q3 2018-5.5%-7.2%+0.4%
Q2 2018+0.9%+2.5%+10.2%
Q1 2018+0.4%+4.5%+4.5%
Q4 2017+2.4%+4.6%-3.5%
Q3 2017-1.2%-0.9%+2.3%
Q2 2017-1.3%-1.1%-2.3%
Q1 2017+2.2%-0.2%-1.5%
Q4 2016+4.3%+3.4%+14.8%
Q3 2016-4.9%-4.2%-4.2%
Q2 2016-1.7%-3.8%-4.4%
Q1 2016-4.2%
Q4 2015-1.4%
Q3 2015+3.1%
Q2 2015-0.3%
Q1 2015+4.2%
Q4 2014-7.7%
Q3 2014+4.3%
Q2 2014-2.5%
Q1 2014-3.7%
Q4 2013+1.9%
Q3 2013+6.2%
Q2 2013-1.3%
Q1 2013+4.2%
Q4 2012+0.3%
Q3 2012-3.6%
Q2 2012+4.7%
Q1 2012+1.8%
Q4 2011-0.1%
Q3 2011+0.7%
Q2 2011-0.3%
Q1 2011-0.6%
Q4 2010-0.4%
Q3 2010-1.4%
Q2 2010+1.1%
Q1 2009+3.0%
Q1 2010-1.0%
Q4 2007+0.0%
Q4 2009+0.0%
Q4 2008+0.9%
Q3 2008+0.9%
Q3 2009+0.9%
Q2 2009-0.0%
Q2 2008-0.0%

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