At least somebody benefitted from that toilet paper shortage a few months back. Kimberly-Clark Corporation (KMB
) shares rose over 2% last week after the household products company reported better-than-expected second quarter (Q2) results. The firm behind Scott and Cottonelle posted adjusted earnings
of $2.20 per share, easily surpassing Wall Street expectations of $1.80 per share. Meanwhile, revenue
of $4.61 billion came in 3.4% above the consensus estimate. Not surprisingly, the bottom line was boosted by the company's consumer tissue segment, which grew 12% from a year earlier amid ongoing demand for toilet paper throughout the pandemic.
Management expects full-year earnings per share
(EPS) of between $7.40 and $7.50, up from its previous forecast range of between $7.10 and $7.35. The company also announced that it plans to reinstate its share repurchase
program, intending to buy back $700 million to $900 million of its stock this year. The move indicates an improving outlook for the industry in the second half, which bodes well for other household products stocks.