NASDAQ$KMB

Kimberly-Clark Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported a 1% increase in net sales and a solid organic sales growth, while managing near-term operating priorities and increasing growth investments.

Kimberly-Clark reported a 1% increase in net sales to $4.7 billion, driven by a 3% organic sales growth. Adjusted earnings per share were $1.72, and the company is raising its full-year outlook, expecting adjusted earnings per share to grow 9 to 11 percent this year.

  • Net sales increased 1% to $4.7 billion, with organic sales growth of 3%.
  • Diluted net income per share was $1.38, while adjusted earnings per share were $1.72.
  • The company achieved $140 million in cost savings and returned approximately $560 million to shareholders through dividends and share repurchases.
  • Full-year outlook raised, now expecting adjusted earnings per share growth of 9 to 11 percent.

Headline financials

Total Revenue

$4.68B

Previous: $4.64B+0.9%
EPS (adj)

$1.72

Previous: $1.84-6.5%
Organic Net Sales Growth

3.0%

No prior period
Free Cash Flow

$472M

Previous: $671M-29.7%
Net Income

$472M

Previous: $671M-29.7%
Operating Income

$666M

Previous: $915M-27.2%
Gross Profit

$1.59B

Previous: $1.56B+2.3%
Cash & Equivalents

$1.52B

Previous: $416M+264.9%
Total Assets

$16.5B

Previous: $15B+10.0%
Stock-Based Comp

$47M

Previous: $26M+80.8%

Revenue & EPS history

Kimberly-Clark · Revenue · Quarterly

$4.68B

Q3 2020+0.9%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

The company is targeting full-year 2020 organic net sales growth of 5 percent and adjusted earnings per share of $7.50 to $7.65.

Tailwinds

  • Net sales increase of 2 to 3 percent.
  • Organic sales increase of 5 percent.
  • Adjusted operating profit growth of 8 to 10 percent.
  • Adjusted earnings per share of $7.50 to $7.65.
  • No significant impact from potential supply chain disruptions as a result of COVID-19.

Headwinds

  • Foreign currency exchange rates unfavorable between 2 and 3 percent.
  • The net impact of the acquisition of Softex Indonesia and exited businesses in conjunction with the 2018 Global Restructuring Program expected to increase sales slightly.
  • 2018 Global Restructuring Program is expected to be completed in 2021, with total restructuring charges anticipated to be toward the high end of the range of $1,700 to $1,900 million pre-tax ($1,300 to $1,400 million after tax).
  • The company continues to target to achieve those savings by the end of 2021, although it is possible the full realization could occur in 2022 because of the uncertainties related to COVID-19.
  • COVID-19 makes it more challenging for management to estimate future business performance, particularly over the near term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.1%

Avg return

Earnings day

-1.0%

Avg return

5 days after

+0.7%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+12.0%

Q1 2022

Best reaction

-7.8%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-0.6%+1.0%
Q4 2025-0.7%-1.1%+9.1%
Q3 2025+3.1%-13.8%-6.5%
Q2 2025+4.8%+9.7%+3.6%
Q1 2025-1.5%-6.0%-0.2%
Q4 2024-1.5%-1.1%+6.7%
Q3 2024-5.1%-6.0%-5.0%
Q2 2024-2.5%-1.6%+0.3%
Q1 2024+6.9%+4.9%+2.3%
Q4 2023-3.6%-2.9%-2.6%
Q3 2023-2.5%-4.1%+0.4%
Q2 2023-3.8%-4.9%-6.3%
Q1 2023+0.8%+1.7%-3.8%
Q4 2022-3.2%-4.2%-6.3%
Q3 2022+3.8%+7.3%+15.7%
Q2 2022-1.0%-1.2%-0.4%
Q1 2022+12.0%+9.7%+0.2%
Q4 2021-1.5%-1.4%-5.6%
Q3 2021+0.2%-2.7%+1.6%
Q2 2021+0.1%-0.0%+2.4%
Q1 2021-7.0%-7.6%-5.7%
Q4 2020+3.7%-0.1%-1.1%
Q3 2020-7.8%-9.2%-5.8%
Q2 2020+2.1%+4.5%+9.0%
Q1 2020+0.6%+0.6%+0.2%
Q4 2019-0.7%+0.3%-2.1%
Q3 2019-3.5%-3.6%-4.2%
Q2 2019+0.3%+2.2%+5.6%
Q1 2019+1.7%+1.8%+6.0%
Q4 2018-3.3%-6.2%+3.4%
Q3 2018-5.5%-7.2%+0.4%
Q2 2018+0.9%+2.5%+10.2%
Q1 2018+0.4%+4.5%+4.5%
Q4 2017+2.4%+4.6%-3.5%
Q3 2017-1.2%-0.9%+2.3%
Q2 2017-1.3%-1.1%-2.3%
Q1 2017+2.2%-0.2%-1.5%
Q4 2016+4.3%+3.4%+14.8%
Q3 2016-4.9%-4.2%-4.2%
Q2 2016-1.7%-3.8%-4.4%
Q1 2016-4.2%
Q4 2015-1.4%
Q3 2015+3.1%
Q2 2015-0.3%
Q1 2015+4.2%
Q4 2014-7.7%
Q3 2014+4.3%
Q2 2014-2.5%
Q1 2014-3.7%
Q4 2013+1.9%
Q3 2013+6.2%
Q2 2013-1.3%
Q1 2013+4.2%
Q4 2012+0.3%
Q3 2012-3.6%
Q2 2012+4.7%
Q1 2012+1.8%
Q4 2011-0.1%
Q3 2011+0.7%
Q2 2011-0.3%
Q1 2011-0.6%
Q4 2010-0.4%
Q3 2010-1.4%
Q2 2010+1.1%
Q1 2009+3.0%
Q1 2010-1.0%
Q4 2007+0.0%
Q4 2009+0.0%
Q4 2008+0.9%
Q3 2008+0.9%
Q3 2009+0.9%
Q2 2009-0.0%
Q2 2008-0.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro