Kimberly-Clark Tumbles After Earnings Miss Analysts' Estimatesby
Kimberly-Clark Corp., the consumer-products giant that owns Kleenex and Huggies, suffered its worst stock decline in five months after sales and profit missed analysts’ estimates.
Excluding some items, fourth-quarter earnings amounted to $1.42 a share last quarter, the Dallas-based company said in a statement Monday. Analysts had predicted $1.43 on average, according to data compiled by Bloomberg. Sales came in at $4.54 billion, short of the $4.57 billion projected. Kimberly-Clark also gave a 2016 earnings forecast whose midpoint was well below predictions.
The results underscore the company’s struggles with currency fluctuations, as well as an increase in spending on marketing and research. The strong U.S. dollar has crimped revenue overseas, where Kimberly-Clark gets about half its sales.
The stock fell 3.2 percent to $122.69 in New York after the report was released, the biggest intraday decline since August. It gained 10 percent last year.