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Kimberly-Clark (KMB) Beats on Q2 Earnings and Revenue

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Kimberly-Clark Corporation (KMB - Free Report) is one of the leading players in several consumer product categories including diapers, paper goods, and female personal care. Kimberly-Clark regularly focuses on improving its products through innovation in order to remain competitive and drive growth.

Kimberly-Clark’s cost saving measures, regular innovations, growth initiatives and a strong international presence are strong pillars of the company and have been driving earnings for the past many quarters.

However, Kimberly-Clark has been facing headwinds of late, which is driving down its share price. A few law firms have filed a shareholder class action lawsuit against the company and Halyard Health, Inc., which was spun out of Kimberly-Clark in Oct 2014, that they made false and misleading statements regarding surgical gowns and knowingly provided defective surgical gowns to U.S. workers amid the Ebola crisis. Due to this, investors are eagerly awaiting Kimberly-Clark’s earnings report.

Investors should also note the recent earnings estimate revisions for KMB, as the consensus estimate has been moving downwards over the past 30 days period. KMB has a mixed history in earnings season. KMB has delivered three positive and one negative surprise in the last four quarters, making for a positive average surprise of 1.24%.

Currently, KMB has a Zacks Rank #4 (Sell), but that could definitely change following Kimberly-Clark’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: KMB beats on earnings. Our consensus called for EPS of $1.48, and the company posted adjusted EPS of $1.53 per share instead. Investors should note that these figures take out stock option expenses.

Revenue: KMB posted revenues of $4.588 billion, beating our consensus estimate of $4.521 billion.

Key Stats to Note: Organic sales grew 3% in the quarter, which includes a 7% volume increase in North American consumer products and 5% organic growth in developing and emerging markets. For 2016, the company has re-affirmed its guidance.

Stock Price: Shares inactive in pre-market trading.

Check back later for our full write up on this KMB earnings report later!

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