Kimberly-Clark, parent company of Kleenex, sees its stock fall on lower profit forecasts

Key Takeaways

• Kimberly-Clark’s shares fell Tuesday, after the consumer goods firm cut its full-year profits forecasts.
• The new outlook is the result of "a reassessment of its cost base, including potential impacts from changes in the global geopolitical landscape."
• The first-quarter sales were below expectations, but adjusted earnings per share exceeded forecasts.

Kimberly-Clark shares (KMB), a consumer goods company, fell on Tuesday as the company’s full-year expectations were lowered amid uncertainty over the Trump administration’s tariffs.

The parent company of Kleenex and Huggies as well as several other brands reported adjusted earnings (EPS) of 1.93 dollars per share on sales of 4.84 billion dollars. Visible Alpha surveyed analysts who expected $1.90 billion and $4.89 billion respectively.

Adjusted EPS, Operating Profit Outlooks Lowered

Weighing on the company's stock was its decision to lower its full-year guidance "to reflect a reassessment of its cost base, including potential impacts from changes in the global geopolitical landscape." Kimberly-Clark now sees adjusted operating profit and adjusted EPS to each be "flat to positive on a constant-currency basis."

"The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year," CEO Mike Hsu said. "However, we remain confident in our ability to offset these costs over time and unlock our long-term potential."

Kimberly-Clark stock fell 2.4% after the market opened on Tuesday. They started the day up 7% from the beginning of this year.

UPDATE—This article has been updated with the latest share price information.