2 Stocks with Revenues Reflecting an Economic Recovery

Kimberly Clark Corp. (NYSE:KMB): The manufacturer and marketer of a range of mostly paper-based consumer products reported its second quarter earnings today, with net income falling to $408 million ($1.03 per share) vs. $498 million ($1.20 per share) a year earlier. This is a decline of 18.1% from the year earlier quarter. Revenues rose 8.3% to $5.26 billion from the year earlier quarter. The company reported adjusted net income of $1.18 per share. By that measure, it beat the mean estimate of $1.15 per share. It beat the average revenue estimate of $5.13 billion. KMB stock is up .24% in after hours trades.

Chairman and Chief Executive Officer Thomas J. Falk said, “Our organic sales grew in the second quarter in line with our full-year plan, as we continue to benefit from innovation and targeted growth initiatives. We are gaining market share in a number of businesses and are launching additional product innovations to further improve our brands. We also continue to deliver significant ongoing cost savings and generate strong cash flow. Although adjusted earnings per share were down slightly in the second quarter versus last year, we delivered sequential improvement in most key metrics compared to the first quarter, which gives us added confidence in our performance in the back half of the year.”

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), Colgate-Palmolive (NYSE:CL), Clorox (NYSE:CLX), and Johnson & Johnson (NYSE:JNJ).

Baker Hughes Inc. (NYSE:BHI): The provider of products and services for the drilling and evaluation of oil and gas wells as well as fluids and chemicals and reservoir technology reported second quarter earnings today, with net income rising to $338 million (77 cents per share) vs. $93 million (23 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter. Revenues also jumped 40.5% to $4.74 billion from the year earlier quarter. BHI stock closed up 0.05% today.

Chad C. Deaton, Baker Hughes chairman and chief executive officer, said, “Our performance was solid this quarter with steady improvement of our international profit margin. As expected, the sequential profit improvement in US Land and the Gulf of Mexico nearly offset the seasonal decline in Canada.”

Competitors to Watch: National-Oilwell Varco, Inc. (NYSE:NOV), Weatherford Intl. Ltd. (NYSE:WFT), Halliburton Company (NYSE:HAL), Flotek Industries, Inc. (NYSE:FTK), Oil States Intl., Inc. (NYSE:OIS), Schlumberger Limited. (NYSE:SLB), and Cameron Intl. Corp. (NYSE:CAM).

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