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Kimberly-Clark (KMB) Beats Q1 Earnings; Lags on Revenue

Kimberly-Clark Corporation KMB 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, much like the rest of the consumer staple companies, Kimberly-Clark remains exposed to currency headwinds and higher marketing expenses. 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 slightly upwards. 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 2.60%.

Currently, KMB has a Zacks Rank #2 (Buy), 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 $1.51, 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 $4.476 billion, slightly missing our consensus estimate of $4.508 billion.

Key Stats to Note: Organic sales grew 2% in the quarter, which includes a 5% increase in developing and emerging markets. For 2016, the company expects more benefits from targeted growth initiatives, product innovations and improved net realized revenue.

Stock Price: Shares declined 1.14% in pre-market trading.

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

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