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Here’s where we stand on Kimberly-Clark shares after a better-than-feared quarter
Kimberly-Clark shares rose about 1.5% after the Huggies, Kleenex and Cottonelle owner reported third-quarter earnings that beat expectations, despite lower sales and profit than a year earlier. The results and the stock’s defensive performance have reinforced the case for holding it as technology shares fall.
Revenue slipped 0.4% year on year to $4.13 billion, in line with forecasts, while adjusted earnings per share fell 7% to $1.70, above the expected $1.66. Kimberly-Clark has completed its acquisition of Kenvue, adding consumer-health brands including Tylenol and Band-Aid; executives see opportunities to cut costs and expand sales across the combined company, while acknowledging that some Kenvue businesses still need improvement. The article reiterates a buy-equivalent rating and a $120 price target.
In short
- Kimberly-Clark beat earnings expectations in the third quarter.
- Revenue was $4.13 billion; adjusted EPS was $1.70.
- Its Kenvue acquisition may create growth and cost-saving opportunities.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Investors could argue that Kimberly-Clark’s better-than-expected earnings and modest share gain show its everyday consumer brands can provide resilience when technology stocks are under pressure. The Kenvue acquisition also offers scope to broaden its portfolio and reduce costs, making the shares attractive to those willing to hold through integration and business-improvement work.
The case against
Investors could argue that the earnings beat was modest and came alongside falling sales and profit, so it may not signal a durable improvement in the business. The Kenvue acquisition brings integration challenges and underperforming operations, while the article’s $120 target depends on expected gains that have yet to be demonstrated.