Kimberly Clark Corporation KMB stocks are gaining ground in Tuesday’s pre-market session.
The company reported first-quarter adjusted earnings per share of $2.01, beating analysts’ consensus of $1.63.
Quarterly revenue of $5.149 billion topped Street View’s $5.085 billion. Net sales decreased 1%, with organic sales growth of 6% compared to the prior year.
Gross margin was 37.1%, up 390 basis points from the prior year, driven by organic net sales growth and gross productivity gains.
The price-driven increases reflect price actions needed to address higher local costs in hyperinflationary economies, primarily Argentina.
Volume and mix were positive across North America, developing and emerging (D&E) markets, and developed markets (represented by Australia, South Korea, and Western/Central Europe).
Adjusted operating profit increased 14% despite a 12 percentage point unfavorable impact from currency translation, primarily driven by hyperinflationary economies.
Year-to-date capital spending was $194 million compared to $201 million last year.
The company returned $452 million to shareholders through dividends and common stock repurchases.
Total debt was $8 billion as of March 31, 2024, consistent with December 31, 2023.
View: Organic net sales are now expected to grow in the mid-single digits (previous view: low to mid-single digit growth).
The company now expects reported net sales to be negatively impacted by 400 basis points of currency translation and 120 basis points from divestitures (previous view: 300 basis points and 60 basis points, respectively).
Adjusted EPS is now expected to grow at a low percentage rate on a constant currency basis (previous view: high single-digit growth).
Price Action: At last check Tuesday, KMB shares were trading 5.5% higher at $136.02 in premarket trading.
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