Kimberly-Clark jumps after Q2 earnings beat and full-year guidance hike
The Huggies and Kleenex maker said demand held strong across its lineup of household essentials.
Kimberly-Clark shares jumped Friday after the household goods maker posted mixed Q2 earnings but saw solid demand for household essentials like diapers and tissues.
The stock was up 7.1% just after markets opened.
Adjusted earnings per share came in at $1.92, easily topping the $1.67 analyst consensus. Revenue slipped 1.6% to $4.16 billion, falling short of forecasts, but execs said demand for core products were steady even as cost-conscious shoppers pulled back elsewhere.
“I see purchasing power under pressure from consumers, and frankly, we don’t really see a catalyst for that dynamic to change in the near to medium term,” CEO Michael Hsu said on the earnings call. But “there’s not a whole lot of substitutes for our products, and so because of that, demand remains resilient.”
In North America, organic sales rose 4.3%, thanks to a 5.2% jump in volume fueled by promotions and new product launches. The company’s personal care brand segment, which includes Huggies, Kleenex, Kotex, and Scott Paper Towels, also picked up share during the quarter, lifting year-to-date organic sales by about 2%.
Looking ahead, Kimberly-Clark expects adjusted operating profit to grow at a low to mid-single-digit rate this year, a bump from its prior forecast for flat to slightly positive growth. It also sees adjusted earnings per share rising at a low to mid-single-digit rate, slightly improved from its previous outlook of “flat to positive.”
Prior to the earnings move, the stock was down about 4.6% year to date.
