Kimberly-Clark beats by $0.04, reports revs in-line; tempers FY17 guidance (123.81)
- Reports Q2 (Jun) earnings of $1.53 per share, $0.04 better than the Capital IQ Consensus of $1.49; revenues fell 0.7% year/year to $4.55 bln vs the $4.56 bln Capital IQ Consensus. Organic sales were down 1 percent due to lower net selling prices.
- Co issues guidance for FY17, sees EPS at low end of $6.20-6.35 vs. $6.29 Capital IQ Consensus Estimate; sees FY17 revs similar to or slightly up Y/Y from $18.2 bln vs. $18.43 bln Capital IQ Consensus (down from +1-2%). Net sales and organic sales expected to be similar, or up slightly, year-on-year (prior assumption up 1 to 2 percent). Volumes anticipated to be up slightly, while net selling prices and product mix, combined, are expected to be down slightly. Input cost inflation of $200 to $300 million compared to the previous estimate of $150 to $250 million. The update is driven by higher assumptions for pulp costs. Cost savings of $425 to $450 million from the company's FORCE program. The prior estimate was for savings of at least $400 million.
- "Our second quarter results reflect a challenging environment. Nonetheless, we continue to manage our company with financial discipline, as we achieved $120 million of cost savings, improved working capital and returned more than $600 million to shareholders through dividends and share repurchases. We are focused on competing effectively in the near-term while we continue to execute our Global Business Plan strategies for long-term success."