Kimberly-Clark Earnings: Here’s Why Shares are Up 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 2.69%.

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Kimberly-Clark Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.68% to $1.36 in the quarter versus EPS of $1.24 in the year-earlier quarter.

Revenue: Rose 1.47% to $5.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kimberly-Clark Corporation reported adjusted EPS income of $1.36 per share. By that measure, the company beat the mean analyst estimate of $1.34. It beat the average revenue estimate of $5.28 billion.

Quoting Management: Chairman and Chief Executive Officer Thomas J. Falk said, “We are off to an excellent start to the year. We achieved solid organic sales growth compared to a strong year-ago result, including benefits from targeted growth initiatives and product innovations. We improved adjusted gross margin by 140 basis points and adjusted operating profit margin by 200 basis points. We delivered all-time record adjusted earnings per share, reflecting continued momentum in K-C International, $85 million of cost savings from our ongoing FORCE program and above-plan volume growth in North American consumer tissue. Finally, we improved cash flow and returned $0.8 billion to shareholders through dividends and share repurchases. As a result of our strong first quarter performance, we are raising our full-year outlook for adjusted earnings per share while we continue to invest for long-term success. We are optimistic about our plans and believe that execution of our Global Business Plan strategies will generate attractive returns to shareholders.”

Key Stats (on next page)…

Revenue increased 0.21% from $5.31 billion in the previous quarter. EPS decreased 0.73% from $1.37 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.37 to a profit $1.38. For the current year, the average estimate is a profit of $5.59, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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