Kimberly-Clark Corp. (NYSE: KMB) saw a 1.6% decrease in its stock price early Wednesday following the release of weaker-than-expected fourth-quarter earnings. The company reported a net income of $509 million, or $1.50 per share, for the quarter, slightly higher than the $507 million, or $1.50 per share, reported in the same period last year. However, adjusted earnings per share came in at $1.51, missing the FactSet consensus of $1.54.
Despite the lower-than-expected earnings, sales for the quarter increased to $4.970 billion from $4.964 billion in the previous year, although this figure still fell short of the $4.989 billion consensus forecasted by FactSet. Kimberly-Clark attributed the boost in earnings to strong results in its personal care segment.
Looking ahead, Chief Executive Mike Hsu expressed confidence in the company’s strategic foundation and financial position, stating that recent challenges related to cost recovery and supply chain stabilization are mostly behind them. Kimberly-Clark is set to host an Investor Day in March to outline its future priorities and strategies.
For 2024, Kimberly-Clark anticipates organic sales growth in the low-to-mid single-digit percentage range and an earnings per share increase at a high single-digit rate on a constant-currency basis compared to the previous year. It’s worth noting that organic sales figures exclude the effects of currency fluctuations, as well as acquisitions and disposals.
Furthermore, the company announced a 3.4% increase in its quarterly dividend to $1.22 per share. The dividend will be payable on April 2 to shareholders of record as of March 8.
Kimberly-Clark’s stock has experienced a 7% decline over the past 12 months.
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