Personal-care products company Kimberly-Clark (NYSE: KMB – $112.62) reported third-quarter sales that missed expectations. Net income for the quarter totaled $567.0 million, or $1.60 per share, up from $550.0 million, or $1.52 per share, for the same period last year. The consensus was $1.54. Revenue totaled $4.64 billion, up from $4.59 billion, but below the $4.66 billion Street estimate. Sales in the consumer tissue and K-C Professional segments rose, while the sales from the personal care segment, which includes Huggies diapers and baby wipes, fell.
The company maintained its guidance for full-year 2017 earnings per share at the low end of the range of $6.20 to $6.35. Management didn’t provide enthusiastic prospects of a sales rebound any time soon as organic sales will likely be flat for 2017, and expects 2018 to be “challenging”, as well. I will hold on to the position in high-quality Kimberly-Clark, yielding 3.45%, for now.