The company has updated its 2025 financial projections, reflecting both strategic changes and external challenges. Organic sales growth is now expected to surpass the growth rate of the markets in which it operates. These markets are currently expanding between 1.5% and 2%, slightly down from an initial 2% at the beginning of the year.
The forecast for reported net sales anticipates a negative impact of approximately 200 basis points due to currency translation, improved from a previous expectation of 300 basis points. Additionally, the divestiture of its PPE business and the withdrawal from the private label diaper market in the U.S. are projected to negatively impact sales by 240 basis points.
For 2025, the company predicts adjusted operating profit to remain flat or show slight growth on a constant-currency basis, a downgrade from prior expectations of high single-digit growth. This revision accounts for a 320 basis point drag from strategic business exits and a 200 basis point effect from currency fluctuations, improved from an earlier forecast of a 300 basis point impact.
Adjusted earnings per share (EPS) are also anticipated to be flat or slightly positive, with a 320 basis point impact from business exits combined with other factors such as higher interest expenses and tax rates. Currency effects are projected to exert a 300 basis point drag on EPS, a more favorable outlook compared to the previously expected 350 to 400 basis points.
Finally, the company estimates its adjusted free cash flow to reach approximately $2 billion in 2025, slightly below previous forecasts of more than $2 billion, reflecting ongoing economic uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Kimberly-Clark Corp (KMB, Financial) is $146.70 with a high estimate of $168.00 and a low estimate of $118.00. The average target implies an upside of 4.73% from the current price of $140.07. More detailed estimate data can be found on the Kimberly-Clark Corp (KMB) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Kimberly-Clark Corp's (KMB, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kimberly-Clark Corp (KMB, Financial) in one year is $129.70, suggesting a downside of 7.4% from the current price of $140.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kimberly-Clark Corp (KMB) Summary page.
