Kimberly-Clark Corporation’s Upcoming Q4 Results Preview

Deutsche Bank analysts provided their outlook on Kimberly-Clark Corporation (NYSE:KMB) ahead of the upcoming Q4/22 results, scheduled on Jan 25.

The analysts expect relatively in-line results vs. Street as potential upside from US consumption momentum is likely hampered by pockets of retailer destocking, FX pressures (albeit abating in the recent weeks), and higher OPEX spend.

According to the analysts, a key focus will be on the company's Q4 gross margin exit rate to help determine the achievability of arguably elevated Street expectations for fiscal 2023.

While the analysts expect the company to provide a full-year organic sales outlook slightly ahead of its long-term algorithm (up 1-3%), they believe 2023 EPS may underwhelm vs. sell-side consensus (a combination of less robust cost relief and management allowances for reinvestment).