Kimberly-Clark Corp. shares
KMB,
slid 3.9% in premarket trade Friday, after the consumer goods company missed earnings estimates for the second quarter and lowered its guidance, as higher costs and reduced demand for consumer tissue weighed. The company posted net income of $404 million, or $1.19 a share, in the quarter, down from $681 million, or $1.99 a share, in the year-earlier period. Adjusted per-share earnings came to $1.47, missing the $1.71 FactSet consensus. Sales edged up 2% to $4.722 billion from $4.612 billion, also below the $4.766 billion FactSet consensus. Chief Executive Mike Hsu said the numbers reflect continued pandemic-driven volatility. “We are facing significantly higher input costs and a reversal in consumer tissue volumes from record growth in the year ago period as consumers and retailers in North America continued to reduce home and retail inventory,” Hsu said in a statement. “While we look forward to a return to a more normalized environment, we have moved decisively to take pricing actions to mitigate inflationary headwinds and continue to prudently manage costs.” The company is now expecting full-year adjusted EPS of $6.65 to $6.90, down from prior guidance of $7.30 to $7.55. It expects sales to grow 1% to 4%, down from prior guidance of 3% to 5%. It also expects to complete a restructuring program in 2021 and to book charges of $2.0 billion to $2.1 billion. Shares have fallen 0.1% in the year through Thursday, while the S&P 500
SPX,
has gained 16%.
