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Sep 30, 2022
Kimberly-Clark Q3 2022 Earnings Report
Reported a 1% increase in net sales and a decrease in adjusted earnings per share by 14% compared to the year-ago period.
Key Takeaways
Kimberly-Clark's Q3 2022 results showed a slight increase in net sales, driven by organic sales growth, but adjusted earnings per share declined due to higher input costs and other factors. The company is maintaining its full-year organic sales growth target and expects adjusted earnings per share to be at the lower end of the provided range.
Third quarter net sales increased 1 percent year-over-year to $5.1 billion, including 5 percent organic sales growth.
Diluted net income per share was $1.38, compared to $1.39 in the previous year.
Adjusted earnings per share decreased 14 percent to $1.40, compared to $1.62 in the previous year.
The company is targeting full-year organic sales growth of 5 to 7 percent and expects adjusted earnings per share at the lower end of $5.60 to $6.00 range.
Forward Guidance
Kimberly-Clark updated key planning and guidance assumptions for full-year 2022. The outlook reflects assumptions subject to change given the high level of volatility in the macro environment.
Positive Outlook
- Net sales increase 2 to 4 percent.
- Organic sales growth of 5 to 7 percent (no change).
- Adjusted effective tax rate 22 to 23 percent (previous estimate 22 to 24 percent).
- Adjusted earnings per share outlook remains at the lower end of $5.60 to $6.00 range (no change).
- Capital spending $0.9 to $1.0 billion (previous range $1.0 to $1.1 billion).
Challenges Ahead
- Foreign currency exchange rates unfavorable 3 to 4 percent on net sales (previous estimate 3 percent) with mid-to high-single digit impact on operating profit (previously mid-single digit).
- High level of volatility in the macro environment.
- Assumptions are subject to change.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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