Kimberly-Clark +5% After Q1 Results - Here's Why

Zinger Key Points
  • Kimberly-Clark's Q1 EPS surpasses estimates at $2.01, with revenues of $5.149B, driven by 6% organic sales growth.
  • Despite a 1% decline in net sales, Kimberly-Clark's gross margin improves by 390 basis points to 37.1%.

Kimberly-Clark Corporation KMB shares are gaining in the premarket session on Tuesday.

The company reported first-quarter adjusted earnings per share of $2.01, beating the analyst consensus of $1.63.

Quarterly revenues of $5.149 billion topped the street view of $5.085 billion. Net sales were down 1%, with organic sales growth of 6% versus the prior year.

Gross margin was 37.1%, up 390 basis points versus the prior year, driven by organic net sales growth and gross productivity gains.

Price-led gains reflected necessary pricing actions to address higher local costs in hyperinflationary economies, mainly in Argentina. 

Volume and mix were positive across North America, developing and emerging (D&E), and developed markets (represented Australia, South Korea, and Western/Central Europe).

Adjusted operating profit increased by 14% despite an unfavorable impact of 12 percentage points from currency translation, primarily driven by hyperinflationary economies.

Year-to-date capital spending was $194 million compared to $201 million last year. 

The company returned $452 million to shareholders through dividends and repurchases of common stock. 

Total debt was $8 billion as of March 31, 2024, consistent with December 31, 2023.

Outlook: Organic net sales is now expected to grow mid-single digits (prior view: low-to mid-single-digit growth). 

The company now expects reported net sales to be negatively impacted by 400 basis points of currency translation and 120 basis points from divestitures (prior view: 300 basis points and 60 basis points, respectively).

Adjusted EPS is now expected to grow at a low-teens percentage rate on a constant-currency basis (prior view: high-single-digit growth).

Price Action: KMB shares are trading higher by 5.5% to $136.02 premarket at the last check Tuesday.

Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceMarketsMoversGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!