Kimberly-Clark attributed its performance to organic sales growth, cost savings, and lower selling, general and administrative expenses, offset in part by unfavorable foreign currency exchange rates and input cost inflation.
The company’s CEO said:
We delivered a solid first quarter with good organic sales growth and cost savings. We also launched a number of product innovations and made further progress with targeted growth initiatives. We continue to allocate capital in shareholder-friendly ways, as our first quarter dividends and share repurchases totaled three-quarters of a billion dollars. And although we face continued headwinds from currency exchange rates and cost inflation, we’re maintaining our full-year guidance for adjusted earnings per share.
Kimberly-Clark hiked its dividend back in February, but by less than in 2013.
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The company expects to complete the spin-off of its health care business in the third or fourth quarter. And its previously announced strategic changes to its Western and Central European businesses are ongoing.
For the full year, the company forecasts EPS in a range of $6.00 to $6.20. The consensus forecast so far calls for $6.11 per share on $21.52 billion in revenue. For the current quarter, analysts are looking for $1.49 per share earnings and $5.35 billion in revenue.
Shares were inactive in premarket trading Monday, after ending last week at $112.54. The 52-week range is $91.44 to $113.09. Thomson Reuters had a consensus analyst price target of around $108 before these results were announced.
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