Kimberly-Clark makes things like diapers, tissues, and soap. They had some money problems because of things like different currencies and selling some parts of their business. But they still made more money than people thought they would, and they think they can make even more money in the future. Some people are not happy with this, and the price of their stock went down. Read from source...
- The title is misleading, suggesting that the company missed revenue targets, which is not true. The company beat earnings expectations, but missed revenue expectations due to currency headwinds, divestiture impact, and a decline in sales.
- The article uses a misleading chart, which compares the company's revenue to the analyst consensus, but does not show the actual revenue growth rate. This creates the impression that the company underperformed, when in fact, it grew its revenue by 1%.
- The article does not provide any context or explanation for the factors that affected the company's revenue, such as currency translation, divestiture, and sales decline. This makes the article seem like the company is failing, when in fact, it is facing challenges that are beyond its control.
- The article does not mention any positive aspects of the company's performance, such as its earnings growth, gross margin expansion, effective cost management, and productivity gains. This gives the impression that the company is struggling, when in fact, it is delivering strong results in some key areas.
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Kimberly-Clark Corporation (KMB) shares are trading lower following mixed second-quarter earnings. Kimberly-Clark reported quarterly adjusted earnings per share of $1.96 (+19%), beating the analyst consensus of $1.71. Quarterly revenues of $5.029 billion, missing the street view of $5.109 billion. Sales in the second quarter reflected a 2% decline from the previous year, influenced by a 5% currency translation impact and a 1% decrease due to the divestiture of the Tissue and K-C Professional business in Brazil in June 2023. Innovation-led volume gains, effective cost management, and productivity drove substantial EPS expansion. The company's adjusted gross margin was 36.9%, up 290 basis points versus the prior year, driven by organic net sales growth and gross productivity gains. Net interest expense was $63 million versus $67 million in the prior-year period. The company exited the quarter with cash and equivalents worth $1.163 billion. Inventories totaled $1.915 billion. Outlook: Kimberly-Clark still expects FY24 organic net sales to grow at a mid-single-digit rate. Reported net sales are still expected to be negatively impacted by 400 basis points of currency translation and 120 basis points from divestitures. Adjusted EPS is now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis, an increase from previous expectations of low-teens growth.