Kimberly-Clark (KMB) absent its aboriginal drive and is trading bottomward afterward its latest balance results.
Area we were: Customer staples in accepted accept trailed the bazaar this year, but Kimberly-Clark has lagged abaft the Customer Staples Select Sector SPDR ETF (XLP) as able-bodied in 2018.
Area we’re headed: Bulls acquisitive for a P&G-style accession will be aghast as Kimberly-Clark slipped added into the red on Monday.
Pass the tissues: Kimberly-Clark banal is bottomward 11.1% year to date, and is falling afresh on Monday, afterward its third-quarter balance report.
The claimed affliction articles maker becoming $1.71 a allotment on acquirement of $4.58 billion, while analysts were attractive for balance of $1.63 a allotment on acquirement of $4.52 billion. Organic sales, which accept been an breadth of broker focus for customer staples stocks, added about 1%.
For the abounding year, Kimberly-Clark sees EPS of $6.60 to $6.80, compared with the $6.64 accord estimate. It additionally called Michael Hsu as its new CEO, able in January.
The banal initially ticked up on the news, but was durably in the red by Monday afternoon.
Why the about face, abnormally afterwards Procter & Gamble ’s (PG) big post-earnings bang aftermost week?
Investors weren’t assured a abundant quarter, accustomed customer staples’ aerial achievement this year, and as Wells Fargo ’s Bonnie Herzog writes, the after-effects all-embracing were apparently bigger than feared. However, Kimberly-Clark has had a bigger run than best staples in contempo months, which larboard beneath allowance for error.
In addition, Herzog estimates that a lower-than-expected tax amount acceptable benefited EPS by about 9 cents—i.e. afterwards that, Kimberly-Clark would accept absent by a penny. For her part, Herzog charcoal “concerned about assiduous structural headwinds including college clandestine characterization penetration” and common a Bazaar Perform appraisement on the shares.
Kimberly-Clark is 2.8% lower to $107.14 in contempo trading.
Make the Connection
Deja-vu: We’re basically aback area we were a year go.
Accepted Mills (GIS) was addition staples banal that fell afterwards advertisement earnings.
Write to Teresa Rivas at [email protected]
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