Categories Consumer, Earnings, U.S. Markets News

Kimberly-Clark stock drops on Q4 earnings miss, weak guidance

Kimberly-Clark (KMB), a leading manufacturer of personal care products, Wednesday reported weaker than expected earnings for the fourth quarter, reflecting a decline in sales. The unimpressive bottom line performance and the dismal outlook for the current fiscal year triggered a selloff and the company’s stock dropped about 4% in early trading.

Kimberly-Clark Q4 Adj. Earnings Rise
Kimberly-Clark Q4 2018 Earnings Infographic

Adjusted earnings moved up to $1.60 per share during the three-month period from $1.57 per share a year earlier, but missed analysts’ forecast. Meanwhile, unadjusted earnings decreased sharply to $1.18 per share from $1.75 per share in the fourth quarter of 2017.

During the December-quarter, net sales dropped 1% annually to $4.6 billion, hurt mainly by a 2% decline in the personal care segment that more than offset a 2% growth in the sales of K-C Professional products. The top line, which was also impacted by unfavorable foreign exchange rates, topped the estimates. Meanwhile, there was a 3% increase in organic sales during the quarter, supported by an improvement in net selling prices.

There was a 3% increase in organic sales during the quarter, supported by an improvement in net selling prices

Kimberly-Clark’s board of directors approved a 3% increase in quarterly dividend for fiscal 2019, marking the 47th hike in a row. During the quarter, the management repurchased 1.8 million shares for about $199 million.

“We expect the environment in 2019 will remain challenging, although somewhat better than in 2018. In this environment, our teams will continue to execute our strategies for long-term success. We are targeting to deliver a solid operating plan, with higher organic sales growth compared to 2018 and improved margins despite expectations for significant headwinds from commodities and currencies,” said CEO Mike Hsu.

Kimberly-Clark stock rises on upbeat Q3 results

The management is expecting a 1-2% decline in net sales and a 2% increase in organic sales in fiscal 2019. Full-year adjusted earnings are estimated o be in the range of $6.50 per share to $6.70 per share. Operating profit, on an adjusted basis, is forecast to grow between 1% and 4%. During the year, the adjusted effective tax rate is seen increasing to 23-25%. The outlook, however, fell short of market expectations.

Kimberly-Clark’s stock dropped about 2% in premarket trading Wednesday following the earnings report, after closing the previous session lower.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top