Kimberly-Clark Surges After Quarterly Profit Beats EstimatesLauren Coleman-Lochner
Kimberly-Clark Corp., the maker of Kleenex tissue and Huggies diapers, rose the most in more than five years after its first-quarter profit topped analysts’ estimates.
Earnings amounted to $1.42 a share last quarter, excluding some items, the Dallas-based company said in a statement Tuesday. That compares with the $1.33 predicted by analysts, according to data compiled by Bloomberg.
Kimberly-Clark benefited from product innovation and $100 million worth of cost cuts last quarter. Still, the strong dollar took a toll on the company, which gets about half of its business overseas. Currency effects whittled down sales to $4.69 billion, a 4 percent decline from the previous year. Excluding that impact, sales would have climbed 5 percent overall and 11 percent in emerging markets.
The shares climbed 5.4 percent to $113.15 at the close in New York, the biggest gain since October 2009. They’ve declined 2.1 percent this year.
Kimberly-Clark also reiterated its profit forecast of $5.60 to $5.80 a share. Analysts are predicting $5.64 a share on average.