Kimberly-Clark Earnings Top Street View, Revenue Misses

KMB Personal care products and tissue giant Kimberly-Clark Corp. (NYSE: KMB – $111.88) reported first quarter results and confirmed its previous guidance for full-year 2014 adjusted earnings per share.  Sales of $5.3 billion decreased 1% compared to the year-ago period, but organic sales (excluding the impact of changes in foreign currency exchange rates, lower sales as a result of European strategic changes and pulp and tissue restructuring actions) rose 4%, including a 12% percent increase in K-C International. First quarter adjusted earnings per share were $1.48, even with the year-ago period and a penny above Street expectations. Performance also benefited from cost savings and lower selling, general and administrative expenses. Kimberly-Clark continues to expect that adjusted earnings per share in 2014 will be between $6.00 and $6.20. Assuming a mid-range of $6.10, the shares are valued at 18.3 times, slightly above its long-term average. However, the high-quality shares are yielding 3% at current levels and are a solid income holding when viewed on a risk-adjusted basis.

KMB

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