Kimberly-Clark Increases 2024 Outlook

(RTTNews) - Kimberly-Clark Corporation (KMB) said its 2024 adjusted earnings per share is now expected to grow at a low-teens percentage rate on a constant-currency basis, an increase from previous expectations of high-single-digit growth. Adjusted operating profit is now expected to grow at a low-teens percentage rate on a constant-currency basis, up from previous expectations for high-single-digit to low-double-digit growth on a constant currency basis. The company noted that its reported operating profit and reported earnings per share are currently expected to be negatively impacted by approximately 700 basis points from currency translation, compared to the previous assumptions for a 400 basis-point headwind.

The company now expects 2024 reported net sales to be negatively impacted by 400 basis points of currency translation and 120 basis points from divestitures compared to its previous assumption of 300 basis points and 60 basis points, respectively. Organic net sales is now expected to grow mid-single digits versus the previous expectation of low-to mid-single-digit growth.

First quarter bottom line came in at $647 million, or $1.91 per share compared with $566 million, or $1.67 per share, in last year's first quarter. On an adjusted basis, EPS increased 20 percent to $2.01, driven primarily by the 14 percent increase in adjusted operating profit, aided by lower net interest, a lower effective tax rate, and higher equity income. Analysts on average had expected the company to earn $1.63 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter fell 1.0% to $5.15 billion from $5.20 billion last year. Analysts on average had estimated $5.09 billion in revenue. Organic sales growth was 6 percent versus the prior year, driven by a 4 percent increase in price, 1 percent favorable product mix and a 1 percent increase in volume.

Shares of Kimberly-Clark are up 4% in pre-market trade on Tuesday.

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