04.21.15
Kimberly-Clark Corp. had a pleasant surprise for investors, as first quarter results beat the Street. K-C reported first-quarter net income of $468 million. The Irving, TX-based company said it had net income of $1.27 per share. Earnings, adjusted for non-recurring costs and restructuring costs, came to $1.42 per share. The results exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.33 per share.
However, Q1 sales fell 4% to $4.69 billion, as Forex rates reduced sales by 9%. Organic sales rose 5%, including an 11 percent increase in developing and emerging markets. Still, the results exceeded Street forecasts. Six analysts surveyed by Zacks expected $4.63 billion. Kimberly-Clark expects full-year earnings in the range of $5.60 to $5.80 per share.
"We are off to a very good start to the year. We delivered mid-single digit organic sales growth, significant cost savings and margin improvements and healthy growth in adjusted earnings per share from continuing operations despite substantial headwinds from foreign currencies," said Chairman and Chief Executive Officer Thomas J. Falk. "We also made further progress with targeted growth initiatives, launched product innovations and allocated capital in shareholder-friendly ways. We are executing our Global Business Plan strategies well in a volatile environment and we are maintaining our full-year target for adjusted earnings per share despite a more negative currency outlook. We continue to be optimistic about our future and our prospects to generate attractive returns to shareholders."
However, Q1 sales fell 4% to $4.69 billion, as Forex rates reduced sales by 9%. Organic sales rose 5%, including an 11 percent increase in developing and emerging markets. Still, the results exceeded Street forecasts. Six analysts surveyed by Zacks expected $4.63 billion. Kimberly-Clark expects full-year earnings in the range of $5.60 to $5.80 per share.
"We are off to a very good start to the year. We delivered mid-single digit organic sales growth, significant cost savings and margin improvements and healthy growth in adjusted earnings per share from continuing operations despite substantial headwinds from foreign currencies," said Chairman and Chief Executive Officer Thomas J. Falk. "We also made further progress with targeted growth initiatives, launched product innovations and allocated capital in shareholder-friendly ways. We are executing our Global Business Plan strategies well in a volatile environment and we are maintaining our full-year target for adjusted earnings per share despite a more negative currency outlook. We continue to be optimistic about our future and our prospects to generate attractive returns to shareholders."
Kimberly-Clark shares have decreased 7% since the beginning of the year, while the Standard & Poor's 500 index has climbed 2%. The stock has decreased 3% in the past 12 months.