The 10-second takeaway
For the quarter ended June 30 (Q2), Kimberly-Clark met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Gross margins grew, operating margins shrank, net margins expanded.
Kimberly-Clark reported revenue of $5.27 billion. The 12 analysts polled by S&P Capital IQ foresaw sales of $5.33 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.41. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.39 per share. Non-GAAP EPS of $1.41 for Q2 were 8.5% higher than the prior-year quarter's $1.30 per share. GAAP EPS of $1.36 for Q2 were 7.9% higher than the prior-year quarter's $1.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.2%, 60 basis points better than the prior-year quarter. Operating margin was 15.1%, 30 basis points worse than the prior-year quarter. Net margin was 10.0%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.31 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $21.30 billion. The average EPS estimate is $5.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,012 members out of 1,072 rating the stock outperform, and 60 members rating it underperform. Among 349 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 337 give Kimberly-Clark a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kimberly-Clark is hold, with an average price target of $100.41.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Kimberly-Clark. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.