Kimberly-Clark (KMB) is expected to report an in-line Q2 despite softer organic sales growth as productivity offsets top-line softness, RBC Capital Markets said in a Friday note.
The investment firm expects Kimberly-Clark to report organic sales growth of 0.6%, below the consensus estimate of 1.2%, reflecting slower-than-expected consumption trends in North America.
RBC said it still expects the company to largely reiterate its 2026 guidance on a constant-currency basis when it reports its Q2 financial results on Aug. 4.
Improving oil prices suggest Kimberly-Clark has avoided the worst-case cost inflation scenario discussed last quarter, analysts noted.
The firm also said the financial impact from the Beech Island manufacturing facility fire is likely to be smaller than the effect of last year's Ontario distribution center fire.
RBC Capital Markets maintained its outperform rating on Kimberly-Clark, with a $162 price target.
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