Kimberly-Clark (KMB) Stock Off on Earnings Miss
Shares of Kimberly Clark Corporation (KMB) were down -6.52 or -5.15 percent at $120.20 per share in Monday’s premarket after the company announced fourth quarter earnings that missed analyst expectations early this morning. Kimberly-Clark stock closed at $126.72 per share, up +1.77 or +1.42 percent in Friday’s regular trading session.
Founded in 1872, Irving, Texas based Kimberly-Clark began operating paper mills in Neenah, Wisconsin.
Kimberly-Clark reported adjusted earnings of $1.42 per share in the fourth quarter of its fiscal 2015 year versus $1.35 in the same period one year ago. Net sales for the quarter came to $4.5 billion, a decline of six percent versus the previous year. Analysts expected the company to earn $1.43 per share on revenue of $4.58 billion.
The company cited cost savings, organic sales growth and a lower share count in the factors contributing to the year on year increase in earnings. In the company’s press release, Chairman and Chief Executive Officer Thomas J. Falk said that, “Our fourth quarter results capped off another year of good financial performance for Kimberly-Clark. For the full year of 2015, we achieved 5 percent organic sales growth, highlighted by 10 percent growth in developing and emerging markets and a 5 percent volume increase in our North American consumer products business. We also improved adjusted operating profit margin by 120 basis points, including benefits from $365 million of FORCE cost savings.”
Kimberly-Clark recorded an after tax charge of $102 million in the fourth quarter related to the deconsolidation of its business in Venezuela from the company’s balance sheet after moving to a cost method of accounting. For the full 2015 year, Kimberly-Clark had adjusted earnings per share of $5.76 versus $5.51 last year, an improvement of five percent. The company forecast adjusted earnings per share of $5.70 to $5.80 in their latest guidance.
The company is expecting earnings per share of $5.95 to $6.15 for the full 2016 year. The forecast reflects the company’s expectation of a three to five percent organic sales growth, benign commodity costs and “significantly unfavorable currency exchange rates”. The company has weathered significant pressure in its foreign operations due to the strong dollar.
Kimberly-Clark stock has been performing well since trading under $105 per share in September of last year. This morning’s action has seen the stock recover considerably since the earnings release, and could improve further in the regular trading session depending on the strength of the overall market.
Other News About KMB
Kimberly-Clark CEO: Winning Through Organic Growth
Bloomberg interview with Tom Falk, the company’s CEO.
Huggies Brand Partners with Nurses to Establish Inaugural Huggies Nursing Advisory Council
Advisory Council will offer guidance to nurses to protect newborn’s fragile skin.
Other Stocks in the News
How Microsoft Plans to Beat Google and Facebook to the Next Tech Breakthrough
Feature article on how Microsoft plans to compete with its biggest rivals.
McDonald's earnings buoyed by strength in U.S.
Company beat market expectations for its fourth quarter.