NASDAQ$KMB

Kimberly-Clark Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Kimberly-Clark reported strong organic sales growth and gross margin expansion, raised full-year outlook.

Kimberly-Clark's second quarter 2023 results showed a 1% increase in net sales to $5.1 billion, with organic sales up 5%. The company's gross margin was 33.7%, a 350 basis point increase, and adjusted EPS was $1.65. Due to the strong first-half performance, Kimberly-Clark raised its full-year outlook for organic sales growth to 3-5% and adjusted EPS growth to 10-14%.

  • Net sales increased by 1% to $5.1 billion, with organic sales up 5%.
  • Gross margin improved by 350 basis points to 33.7%, with adjusted gross margin up 380 basis points to 34.0%.
  • Diluted earnings per share were $0.30, while adjusted earnings per share were $1.65.
  • The company raised its 2023 outlook for organic sales growth to 3-5% and adjusted earnings per share growth to 10-14%.

Headline financials

Total Revenue

$5.13B

Previous: $5.06B+1.4%
EPS (adj)

$1.65

Previous: $1.34+23.1%
Organic Net Sales Growth

5.0%

Previous: 9.0%-44.4%
Free Cash Flow

$102M

Previous: $437M-76.7%
Net Income

$102M

Previous: $437M-76.7%
Operating Income

$113M

Previous: $621M-81.8%
Gross Profit

$1.73B

Previous: $1.53B+13.2%
Cash & Equivalents

$580M

Previous: $311M+86.5%
Total Assets

$17.4B

Previous: $18.1B-4.0%
Stock-Based Comp

$47M

Previous: $52M-9.6%

Revenue & EPS history

Kimberly-Clark · Revenue · Quarterly

$5.13B

Q2 2023+1.4%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The company updated its full year expectations for 2023.

Tailwinds

  • Organic sales growth: 3% - 5%
  • FX impact on net sales: (2)%
  • Net sales: 0% - 2%
  • Income from equity companies: up vs. prior year
  • Share repurchases: $100 - $150 million

Headwinds

  • FX impact on operating profit: $(300) - $(400) million
  • Effective tax rate: 23% - 25%
  • This outlook reflects assumptions subject to change given the macro environment
  • This outlook does not include the impact of impairment charges
  • This outlook does not include the net benefit from sale of Brazil tissue and professional business and pension settlements.

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 Q2 2023

Historical avgQ2 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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