Kimberly-Clark +5% After Q1 Results - Here's Why
Portfolio Pulse from Nabaparna Bhattacharya
Kimberly-Clark Corporation (NYSE:KMB) shares rose 5% in premarket trading after reporting Q1 results that exceeded analyst expectations. Adjusted EPS was $2.01, surpassing the consensus of $1.63, with revenues of $5.149 billion beating estimates of $5.085 billion. Organic sales grew by 6%, and gross margin improved by 390 basis points due to productivity gains and pricing actions, particularly in hyperinflationary economies like Argentina. Despite a 12 percentage point impact from currency translation, adjusted operating profit increased by 14%. The company also updated its outlook, expecting mid-single digit organic net sales growth and a low-teens percentage rate growth in adjusted EPS on a constant-currency basis.
April 23, 2024 | 12:50 pm
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Kimberly-Clark's Q1 earnings beat expectations with a notable increase in organic sales and gross margin, leading to a 5% premarket stock price rise. The company also raised its full-year outlook for organic net sales and adjusted EPS growth.
The positive earnings report and upward revision in full-year guidance directly contribute to investor optimism, likely driving short-term stock price appreciation. The significant beat on both top and bottom lines, coupled with improved margins and growth in organic sales, underscore the company's operational efficiency and pricing strategy success, particularly in challenging markets. The updated outlook reflects management's confidence in sustained growth, further bolstering investor sentiment.
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