Kimberly-Clark (KMB) Tops Q4 EPS by 1c, Offers FY Guidance

Kimberly-Clark (NYSE: KMB) reported Q4 EPS of $1.71, $0.01 better than the analyst estimate of $1.70. Revenue for the quarter came in at $4.6 billion versus the consensus estimate of $4.54 billion.

GUIDANCE:

Kimberly-Clark sees FY2020 EPS of $7.10-$7.35, versus the consensus of $7.25.

• The company's key planning and guidance assumptions for 2020 are as follows:
• Net sales increase of 1 percent.
• Organic sales increase of 2 percent, with improvements in net selling prices, volumes and product mix.
• Foreign currency exchange rates unfavorable by 1 percent.
• Exited businesses in conjunction with the 2018 Global Restructuring Program expected to reduce sales slightly.
• Adjusted operating profit growth of 3 to 5 percent.
• Cost savings of $425 to $500 million, including $325 to $375 million from the FORCE program and $100 to $125 million from the 2018 Global Restructuring Program.
• Key cost inputs expected to decline $50 to $200 million, driven by pulp.
• Increased advertising spending.
• Unfavorable foreign currency translation and transaction effects.
• Interest expense expected to increase somewhat year-on-year.
• Adjusted effective tax rate of 23 to 25 percent.
• Net income from equity companies higher year-on-year.
• Adjusted earnings per share of $7.10 to $7.35 compared to $6.89 in 2019.
• Capital spending of $1,150 to $1,350 million, including significant spending related to the 2018 Global Restructuring Program.
• Dividend increase of 3.9 percent (approved by the Board of Directors and mentioned previously in this release). The quarterly dividend will increase to $1.07 per share, up from $1.03 per share in 2019. The first dividend will be payable on April 2, 2020 to stockholders of record on March 6, 2020.
• Share repurchases of $700 to $900 million, subject to market conditions.

For earnings history and earnings-related data on Kimberly-Clark (KMB) click here.

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