Kimberly-Clark (KMB) Misses Q3 EPS by 4c, Lowers FY EPS Guidance

Kimberly-Clark (NYSE: KMB) reported Q3 EPS of $1.62, $0.04 worse than the analyst estimate of $1.66. Revenue for the quarter came in at $5 billion versus the consensus estimate of $4.99 billion.

GUIDANCE:

Kimberly-Clark sees FY2021 EPS of $6.05-$6.25, versus the consensus of $6.70.

• Net sales increase 1 to 2 percent (prior assumption 1 to 4 percent).
• Organic sales decline 1 to 2 percent (prior outlook decline 0 to 2 percent).
• Combined benefit of foreign currency exchange rates and the Softex Indonesia acquisition net of exited businesses in conjunction with the 2018 Global Restructuring Program expected to increase sales 3 percent (prior assumption foreign currency benefit 1 to 2 percent, Softex Indonesia acquisition increase sales 2 percent while exited businesses reduce sales slightly).
• Adjusted operating profit expected to decline 20 to 22 percent year-on-year (prior assumption decline of 11 to 14 percent).
• Key cost inputs expected to increase $1,400 to $1,500 million (previous estimate $1,200 to $1,300 million). The increased estimate driven by polymer-based materials, distribution costs, and energy rates.
• Cost savings of $520 to $540 million, including $390 to $400 million from the FORCE program and $130 to $140 million from the 2018 Global Restructuring Program (prior outlook total savings of $520 to $560 million including $400 to $420 million from the FORCE program and $120 to $140 million from the 2018 Global Restructuring Program).
• Net income from equity companies down year-on-year (prior outlook similar, to down somewhat).
• Adjusted earnings per share of $6.05 to $6.25 (prior outlook $6.65 to $6.90).
• Capital spending of $1,000 to $1,100 million (prior outlook $1,100 to $1,200 million).
• Share repurchases of approximately $400 million (prior outlook $400 to $450 million).

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

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