Kimberly-Clark Earnings: Here’s Why Investors are Buying More Shares Now

Kimberly-Clark Corporation (NYSE:KMB) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.39%.

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Kimberly-Clark Corporation Earnings Cheat Sheet

Results: Net income decreased -33.42% to $267 million ($1.37 per diluted share) in the quarter versus a net gain of $401 million in the year-earlier quarter.

Revenue: Rose 2.4% to $5.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kimberly-Clark Corporation reported adjusted net income of $1.37 per share. By that measure, the company beat the mean analyst estimate of $1.35. It beat the average revenue estimate of $5.19 billion.

Quoting Management: Chairman and Chief Executive Officer Thomas J. Falk said, “Our fourth quarter results capped off a year of excellent performance for Kimberly-Clark. For the full year of 2012, we delivered organic sales growth of 5 percent, highlighted by 10 percent growth in K-C International. We launched a number of product innovations and increased strategic marketing spending by $115 million and research and development spending at a double-digit rate. We improved adjusted gross margin by 230 basis points and adjusted operating profit margin by 90 basis points, aided by $335 million of cost savings from our ongoing FORCE program and restructuring actions. We grew adjusted earnings per share by 9 percent, above our original plan for the year and at the high end of our long-range target. Finally, we generated very strong cash flow, which allowed us to return $2.5 billion to shareholders through dividends and share repurchases.”

Key Stats:

Revenue increased 1.03% from $5.25 billion in the previous quarter. Net income decreased 48.36% from $517 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.33 to a profit $1.31. For the current year, the average estimate has moved up from a profit of $5.22 to a profit of $5.23 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)