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Kimberly-Clark (KMB) Lags Q2 Earnings and Revenue
July 25, 2017

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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 and strong international presence will drive growth in the long-term. However, Kimberly-Clark has been facing headwinds of late, which is driving down its share price. Sluggish organic sales growth, unfavorable currency and increased competition are eroding sales growth.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 and 2018 both declined by 0.2% in the last thirty days. However, in the trailing four quarters, excluding quarter under review, the company outpaced the Zacks Consensus Estimate by an average of nearly 1.5%.

Zacks Rank: Currently, KMB has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. The Zacks Rank 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 lags on earnings. Our consensus called for EPS of $1.50, and the company posted adjusted EPS of $1.49 per share instead. Investors should note that these figures take out stock option expenses.

Revenue: KMB posted revenues of $4.554 billion, missing our consensus estimate of $4.556 billion.

Key Stats to Note: Organic sales declined 1% in the quarter, due to organic sales decline in developed markets especially in North America. However, organic sales growth increased in developing and emerging markets. Further, the company anticipates higher input cost inflation in 2017, which also pulled down full year’s earnings expectations. The company now expects earnings to be at the low end of the previous guidance.

Stock Price: Shares were inactive in pre-market trading.

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

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