Loading...
•
Jun 30, 2022
Kimberly-Clark Q2 2022 Earnings Report
Kimberly-Clark reported strong organic sales growth across all segments, driven by net selling price increases and product mix improvements, while managing significant input cost inflation.
Key Takeaways
Kimberly-Clark's Q2 2022 net sales increased by 7% to $5.1 billion, with organic sales growth of 9%. Diluted net income per share was $1.29, and adjusted earnings per share were $1.34, a 9% decrease compared to the previous year. The company is targeting full-year 2022 organic sales growth of 5 to 7 percent and maintains adjusted earnings per share range of $5.60 to $6.00.
Net sales increased 7% to $5.1 billion, including 9% organic sales growth.
Diluted net income per share was $1.29, compared to $1.19 in the prior year.
Adjusted earnings per share decreased 9% to $1.34, compared to $1.47 in the prior year.
The company is targeting full-year 2022 organic sales growth of 5 to 7 percent and maintains adjusted earnings per share range of $5.60 to $6.00.
Forward Guidance
The company updated key planning and guidance assumptions for full-year 2022. The outlook reflects a reasonable set of assumptions subject to change given the high level of volatility in the macro environment.
Positive Outlook
- Net sales increase 2 to 4 percent (no change).
- Organic sales increase 5 to 7 percent (prior target 4 to 6 percent).
- Adjusted operating profit down mid-single digit percent (prior estimate down low to mid-single digit).
- Adjusted earnings per share remains $5.60 to $6.00.
Challenges Ahead
- Foreign currency exchange rates unfavorable approximately 3 percent (prior estimate approximately 2 percent).
- Key cost inputs expected to increase $1.4 to $1.6 billion (previous estimate $1.1 to $1.3 billion).
- Costs are projected to increase or remain elevated for most inputs, including pulp and other raw materials as well as distribution and energy.
- Given the current cost outlook, expect to be at the lower end of the range.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...