Kimberly Clark Tops Q1 Estimates, Shares Gain

Shares of

rose more than 3 percent in pre-market trading after the company reported stronger-than-expected results for the first quarter on Tuesday. The Dallas, Texas-based company posted quarterly earnings of $468 million, or $1.27 per share, compared to $538 million, or $1.41 per share, in the year-ago period. Excluding items, the company's earnings from continuing operations rose to $1.42 per share from $1.32 per share. Its sales shrank to $4.69 billion from $4.89 billion, while organic sales rose 5 percent. However, analysts were expecting a profit of $1.33 per share on revenue of $4.61 billion. Sales at its personal-care segment slipped 3.1 percent to $2.31 billion, while sales at its consumer-tissue segment dropped 6.8 percent to $1.57 billion. Sales in K-C Professional segment slipped 1 percent to $0.8 billion. Its operating profit rose to $748 million from $711 million, while adjusted operating profit climbed to $815 million in the first quarter from $760 million in the year-earlier period. During the first quarter, the company repurchased 1.8 million shares at a cost of $200 million. The average estimate among 10 Estimize users was for earnings of $1.34 per share and revenue of $4.64 billion. Chairman and Chief Executive Officer Thomas J. Falk said, "We are off to a very good start to the year. We delivered mid-single digit organic sales growth, significant cost savings and margin improvements and healthy growth in adjusted earnings per share from continuing operations despite substantial headwinds from foreign currencies…We continue to be optimistic about our future and our prospects to generate attractive returns to shareholders." Kimberly Clark reaffirmed its forecast for 2015. Kimberly Clark shares gained 3.41 percent to $111.02 in pre-market trading.