Join        Login             Stock Quote

Kimberly Clark (KMB) 4Q Earnings Drop 33.4 Pct, Yet Beat Estimates

 January 25, 2013 08:14 AM

(By Balaseshan) Kimberly Clark Corp. (NYSE: KMB), which manufactures health care products, reported a 33.4% drop in quarterly earnings due to higher costs and expenses. However, results exceeded Street's expectations, sending its shares up 1.64% in premarket.

Earnings for the fourth quarter were $267 million or $0.68 per share, down from $401 million or $1.01 per share last year.

Adjusted earnings per share (EPS) rose to $1.37 from $1.28, driven by organic sales growth and cost savings, partially offset by increased marketing, research and general spending and a higher level of other expense.

[Related -Colgate-Palmolive (CL) Dividend Stock Analysis]

Net sales rose 2.5% to $5.31 billion. Organic sales increased 5%, highlighted by a 9% increase in K-C International. Changes in foreign currency rates and lost sales from exiting non-strategic products in conjunction with pulp and tissue restructuring actions each reduced sales by 1%.

Analysts, on average, polled by Thomson Reuters had expected a profit of $1.35 per share on revenue of $5.19 billion for the fourth quarter.

Personal care sales increased 8% as volumes rose 6% and net selling prices improved by 3%, while consumer tissue sales declined 2% as pulp and tissue restructuring actions lowered volumes by 3% and changes in currency rates and product mix each decreased sales by 1%.

K-C Professional (KCP) sales increased 1% as Organic sales volumes were up 2% and net selling prices improved 1%, while health care sales decreased 2% as changes in sales volumes, net selling prices and currency rates each reduced sales about 1%.

[Related -Jobs Growth Tepid At Best]

Looking ahead into the fiscal 2013, the company expects adjusted EPS of $5.50 to $5.65 and net sales growth of 0% to 3%, while Street analysts predict EPS of $5.58 on revenue growth of 1.20%.

The company expects to increase its dividend at a high-single digit rate effective April 2013. Share repurchases are anticipated to total $1.0 billion to $1.2 billion in 2013.

KMB closed Thursday's regular session down 0.48% at $86.58. The stock has been trading between $70.50 and $88.25 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageA Delicate Balance For US Macro Outlook Via Treasury Yields

US economic growth rebounded in the second quarter, but the Treasury market isn’t convinced that GDP’s 2.3% read on...

article imageTwo Firms On The Cusp Of A Major Turnaround

When a company stumbles repeatedly, investors eventually throw in the towel and sell their shares. read on...

article imagePick a Valid Strategy, Stick With It

I’m not going to argue for any particular strategy here. My main point is this: every valid strategy is read on...

article imageHow to Prepare For A Correction Without Missing Out On Upside Potential

Recent market commentary is starting to remind me of the periods in 2000 and 2008 just before the bottom read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.