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Kimberly-Clark Declares Dividend of $0.92 per Share

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Nov. 17 2016, Updated 11:04 a.m. ET

Price movement

Kimberly-Clark (KMB) has a market cap of $42.0 billion. It rose 0.69% to close at $113.87 per share on November 15, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.4%, -5.7%, and -8.6%, respectively, on the same day.

KMB is trading 0.99% below its 20-day moving average, 5.4% below its 50-day moving average, and 10.6% below its 200-day moving average.

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Related ETF and peers

The PowerShares DWA Consumer Staples Momentum Portfolio 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 -5.6% on November 15.

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

  • Procter & Gamble (PG) — $231.8 billion
  • Edgewell Personal Care (EPC) — $4.8 billion

KMB declared dividend

Kimberly-Clark (KMB) 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.

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Performance of KMB in 3Q16

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

Sales from the 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.

During 3Q16, the company repurchased 1.7 million shares worth $225 million.

Projections

Kimberly-Clark (KMB) has made the following projections for fiscal 2016:

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

In the final part of this series, we’ll look at Clorox Company (CLX).

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