Kimberly-Clark Corp. (KMB) stock sank 3.6% in Thursday premarket trading after the consumer goods company reported third-quarter earnings that missed Street estimates. Net income totaled $472 million, or $1.38 per share, down from $671 million, or $1.94 per share, last year. Adjusted EPS of $1.72 missed the FactSet consensus for $1.76. Sales of $4.68 billion rose from $4.64 billion last year and were ahead of the FactSet forecast for $4.60 billion. Sales dropped in the professional segment of the business due to the coronavirus pandemic. "While earnings in the quarter were down as expected, we're raising our full-year outlook and now expect adjusted earnings per share will grow 9%-to-11% this year," said Mike Hsu, Kimberly-Clark chief executive, in a statement. Kimberly-Clark now expects 2020 adjusted EPS of $7.50 to $7.65 up from previous guidance for $7.40 to $7.60. And sales are expected to increase 2% to 3%. The FactSet consensus is for EPS of $7.71 and sales of $18.88 billion, suggesting a rise of 2.3%. Kimberly-Clark's company restructuring is expected to be complete in 2021 with total charges at the high end of the range of $1.70 billion and $1.90 billion. The revamp is expected to produce an annual pre-tax savings of $500 million to $550 million. Kimberly-Clark stock has gained nearly 8% for the year to date while the S&P 500 index is up 6.3% for the period.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 22, 2020 07:53 ET (11:53 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.