NASDAQ$KMB

Kimberly-Clark Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a 7 percent increase in net sales and a decrease in adjusted earnings per share compared to the year-ago period.

Kimberly-Clark Corporation reported a 7% increase in net sales to $5.0 billion, driven by organic sales growth, but experienced a decrease in adjusted earnings per share to $1.62 due to significant inflation and supply chain disruptions.

  • Third quarter net sales increased 7 percent, with organic sales up 4 percent.
  • Diluted net income per share was $1.39, compared to $1.38 in the previous year.
  • Adjusted earnings per share were $1.62, down from $1.72 in the prior year.
  • The company is now targeting full-year 2021 organic sales decline of 1 to 2 percent and adjusted earnings per share of $6.05 to $6.25.

Headline financials

Total Revenue

$5.01B

Previous: $4.68B+7.0%
EPS (adj)

$1.62

Previous: $1.72-5.8%
Organic Net Sales Growth

4.0%

Previous: 3.0%+33.3%
Free Cash Flow

$469M

Previous: $472M-0.6%
Net Income

$469M

Previous: $472M-0.6%
Operating Income

$657M

Previous: $666M-1.4%
Gross Profit

$1.48B

Previous: $1.59B-6.7%
Cash & Equivalents

$286M

Previous: $1.52B-81.2%
Total Assets

$17.8B

Previous: $16.5B+7.5%
Stock-Based Comp

-$12M

Previous: $47M-125.5%

Revenue & EPS history

Kimberly-Clark · Revenue · Quarterly

$5.01B

Q3 2021+7%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Kimberly-Clark updated its full-year 2021 outlook, anticipating a net sales increase of 1 to 2 percent and an adjusted earnings per share of $6.05 to $6.25.

Tailwinds

  • Net sales increase 1 to 2 percent.
  • Combined benefit of foreign currency exchange rates and the Softex Indonesia acquisition net of exited businesses in conjunction with the 2018 Global Restructuring Program expected to increase sales 3 percent.
  • Cost savings of $520 to $540 million, including $390 to $400 million from the FORCE program and $130 to $140 million from the 2018 Global Restructuring Program.
  • Capital spending of $1,000 to $1,100 million.
  • Share repurchases of approximately $400 million.

Headwinds

  • Organic sales decline 1 to 2 percent.
  • Adjusted operating profit expected to decline 20 to 22 percent year-on-year.
  • Key cost inputs expected to increase $1,400 to $1,500 million.
  • Net income from equity companies down year-on-year.
  • Adjustment for charges related to the 2018 Global Restructuring Program ($0.90)-($0.65).

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 2021

Historical avgQ3 2021

-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%

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