2:49 a.m. Oct. 25, 2021
- By Tonya Garcia
Kimberly-Clark announces profit warning as company prepares to raise pricesKimberly-Clark Corp. shares fell 2.7% in Monday premarket trading after the consumer goods company reported third-quarter earnings that missed expectations and lowered its earnings guidance. Net income totaled $469 million, or $1.39 per share, compared with $472 million, or $1.38 per share, last year. Adjusted EPS of $1.62 missed the FactSet consensus for $1.65. Sales of $5.01 billion were up from $4.68 billion last year and ahead of the FactSet consensus for $4.99 billion. "Our earnings were negatively impacted by significant inflation and supply chain disruptions that increased our costs beyond what we anticipated," said Chief Executive Mike Hsu in a statement. "We are taking further action, including additional pricing and enhanced cost management, to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly." A global restructuring program announced in 2018 is expected to be complete at the end of the year with total charges of $2.1 billion to $2.2 billion pre-tax, and pre-tax annual savings of $550 million to $560 million by the end of 2021. Kimberly-Clark narrowed its sales forecast to growth of 1% to 2% compared to previous guidance of 1% to 4%. Adjusted EPS guidance was lowered to $6.05 to $6.25 from previous guidance of $6.65 to $6.90. The FactSet consensus is for sales of $19.418 billion, implying growth of 1.5%, and EPS of $6.70. Kimberly-Clark stock has fallen 1.3% for the year to date while the S&P 500 index has gained 21% for the period.
2:50 a.m. July 23, 2021
- By Ciara Linnane
Kimberly-Clark profit slides to miss estimates as sales fall short amid reduced demand for tissueKimberly-Clark Corp. shares slid 3.9% in premarket trade Friday, after the consumer goods company missed earnings estimates for the second quarter and lowered its guidance, as higher costs and reduced demand for consumer tissue weighed. The company posted net income of $404 million, or $1.19 a share, in the quarter, down from $681 million, or $1.99 a share, in the year-earlier period. Adjusted per-share earnings came to $1.47, missing the $1.71 FactSet consensus. Sales edged up 2% to $4.722 billion from $4.612 billion, also below the $4.766 billion FactSet consensus. Chief Executive Mike Hsu said the numbers reflect continued pandemic-driven volatility. "We are facing significantly higher input costs and a reversal in consumer tissue volumes from record growth in the year ago period as consumers and retailers in North America continued to reduce home and retail inventory," Hsu said in a statement. "While we look forward to a return to a more normalized environment, we have moved decisively to take pricing actions to mitigate inflationary headwinds and continue to prudently manage costs." The company is now expecting full-year adjusted EPS of $6.65 to $6.90, down from prior guidance of $7.30 to $7.55. It expects sales to grow 1% to 4%, down from prior guidance of 3% to 5%. It also expects to complete a restructuring program in 2021 and to book charges of $2.0 billion to $2.1 billion. Shares have fallen 0.1% in the year through Thursday, while the S&P 500 has gained 16%.
2:49 a.m. April 23, 2021
- By Tomi Kilgore
Kimberly-Clark stock sinks after profit and sales missed, as weather, tissue weakness and inflation weighedShares of Kimberly-Clark Corp. sank 4.5% in premarket trading Friday, after the consumer products company, which brands include Kleenex, Huggies, Scott and Depend, reported first-quarter profit and sales that fell below expectations, and lowered its full-year outlook. "First quarter comparisons were impacted by COVID-19 related stock up in the year-ago period, consumer tissue category softness and commodity inflation," said Chief Executive Mike Hsu. "We also experienced temporary supply chain disruptions related to severe weather conditions in the southern part of the United States." Net income fell to $584 million, or $1.72 a share, form $660 million, or $1.92 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share declined to $1.80 from $2.13, missing the FactSet consensus of $1.93. Sales were down 5% to $4.74 billion, below the FactSet consensus of $4.98 billion, as personal care sales declined 2%, consumer tissue sales dropped 12% and K-C Professional sales fell 11%. Volumes declined 10%, while net selling prices edged up 1%. For 2021, the company cut its adjusted EPS guidance range to $7.30 from $7.55 from $7.75 to $8.00, and lowered its organic sales growth outlook to flat to positive 1% from growth of 1% to 2%. The stock has gained 4.1% year to date through Thursday, while the SPDR Consumer Staples Select Sector ETF has edged up 3.4% and the S&P 500 has advanced 10.1%.
2:47 a.m. Jan. 25, 2021
- By Tomi Kilgore
Kimberly-Clark stock gains after profit and sales beats, raised dividend and new stock buyback programShares of Kimberly-Clark Corp. rose 1% in premarket trading Monday, after the consumer products company, which brands include Huggies, Kleenex and Scott, reported fourth-quarter profit and sales that beat expectations and announced a dividend increase and a new billion stock repurchase program. Net income slipped to $539 million, or $1.58 a share, from $547 million, or $1.59 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $1.69, above the FactSet consensus of $1.62. Sales grew 6% to $4.84 billion, topping the FactSet consensus of $4.73 billion, as personal care sales rose 5% to 42.3 billion, consumer tissue sales increased 14% to $1.7 billion and K-C Professional sales fell 9% to about $700 million. For 2021, the company expects adjusted EPS of $7.75 to $8.00, surrounding the FactSet consensus of $7.79, and sales growth of 4% to 6%, while the FactSet consensus of $19.59 billion implies 2.4% growth. Separately, the company said it has approved a 6.5% increase in the quarterly dividend, and set a new $5 billion stock buyback program. The stock has slipped 3.4% over the past three months through Friday, while the SPDR Consumer Staples Select Sector ETF has lost 0.5% and the S&P 500 has gained 10.9%.