By Kimberly-Clark Corp. (KMB) stock experienced a 2.2% increase in premarket trading on Tuesday as the company announced its second-quarter financial results. Despite a 77% decline in net income, the household products maker surpassed analyst expectations for both its revenue and adjusted profit.
Solid Financials
Kimberly-Clark’s net income for the three months ending June 30 dropped to $102 million, or 30 cents a share, compared to $437 million, or $1.29 a share, in the year-ago quarter. However, adjusted earnings for the latest quarter reached $1.65 a share, surpassing the analyst forecast of $1.48 a share, according to estimates compiled by FactSet.
Moreover, Kimberly-Clark’s revenue for the second quarter rose by 1% to $5.134 billion, slightly above the analyst estimate of $5.126 billion.
Positive Outlook
Looking ahead, Kimberly-Clark has revised its 2023 expectations to reflect anticipated growth. The company now projects organic sales to increase by 3% to 5% in 2023, compared to its previous forecast of 2% to 4%. Additionally, Kimberly-Clark expects its operating margin for the same period to increase by up to 1.5%, exceeding its prior estimate of 1.3%.
These positive upward revisions demonstrate Kimberly-Clark’s confidence in its ability to drive future growth and deliver strong financial performance.
Overall, Kimberly-Clark Corp.’s second-quarter results showcase resilient performance and market-beating figures, positioning the company for continued success in the ever-evolving household products industry.
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