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Kimberly-Clark Corporation

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After posting impressive results in the preceding quarter, Kimberly-Clark reported lower-than-expected results in the third quarter of 2016, wherein both earnings and revenues lagged the Zacks Consensus Estimate. The company also lowered its 2016 guidance for earnings and organic sales growth. Adjusted earnings increased 7.8% from the year-ago figure, boosted by cost savings, input cost deflation, improved operating profits and lower tax rates. However, sales declined 2.6% from the prior-year quarter, mainly due to foreign currency headwinds and lower pricing mix. Organic sales remained flat with the prior-year quarter. Though Kimberly-Clark expects higher cost savings and continued product innovation to drive growth, it anticipates currency volatility, increased competition and higher marketing expenses to hurt profits over the near term.

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