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Kimberly-Clark Announces New Appointments

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Price movement

Kimberly-Clark (KMB) has a market cap of $41.8 billion. It fell 0.47% to close at $113.34 per share on November 16, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.8%, -6.0%, and -9.1%, respectively, on the day.

KMB is trading 1.2% below its 20-day moving average, 5.6% below its 50-day moving average, and 11.0% below its 200-day moving average.

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Related ETF and peers

The PowerShares DWA Consumer Staples Momentum ETF (PSL) invests 3.1% of its holdings in Kimberly-Clark. The ETF tracks an index of US consumer cyclical firms selected and weighted by price momentum. The YTD price movement of PSL was -4.9% on November 16.

The market caps of Kimberly-Clark’s competitors are as follows:

  • Procter & Gamble (PG) — $230.6 billion
  • Edgewell Personal Care (EPC) — $4.8 billion

Latest news on KMB

In a press release on November 16, 2016, Kimberly-Clark reported, “Kimberly-Clark Corporation [KMB] today announced that Michael D. Hsu, currently group president North America Consumer Products, has been named to the role of president and chief operating officer [COO] and will join K-C’s board of directors, effective January 1, 2017.”

The release also noted, “Hsu will accountable for the day-to-day operations of K-C’s business units, along with the company’s global innovation, marketing and supply chain functions.”

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Performance of KMB in 3Q16

Kimberly-Clark reported 3Q16 net sales of $4.6 billion, a fall of 2.8% compared to its net sales of $4.7 billion in 3Q15. This fall was due to the impact of foreign currency exchange rates.

Sales from the company’s Personal Care, Consumer Tissue, and K-C Professional segments fell 1.9%, 3.7%, and 2.9%, respectively, in 3Q16 compared to 3Q15. The company’s gross profit margin and operating margin rose 70 basis points and 170 basis points, respectively, in 3Q16 compared to 3Q15.

The company’s net income and EPS (earnings per share) rose to $550.0 million and $1.52, respectively, in 3Q16, compared to $517.0 million and $1.41, respectively, in 3Q15. It reported adjusted EPS of $1.52 in 3Q16, a rise of 0.66% compared to 3Q15.

KMB’s cash and cash equivalents rose 42.8%, and its inventories fell 9.1% in 3Q16 compared to 4Q15. Its current ratio rose to 0.92x in 3Q16, compared to 0.85x in 4Q15.

Quarterly dividend

Kimberly-Clark has declared a regular quarterly dividend of $0.92 per share on its common stock. The dividend will be paid on January 4, 2017, to shareholders of record on December 9, 2016.

Projections

Kimberly-Clark has made the following projections for 2016:

  • effect of negative foreign currency translation on net sales of 4.0%
  • effect of negative foreign currency translation on organic profit of 3.0%
  • organic sales growth of 2.0%
  • adjusted EPS of $5.95–$6.05
  • share repurchases worth $750 million

In the next article, we’ll look at Lululemon Athletica (LULU).

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