Kimberly-Clark shares slide on earnings miss
Kimberly-Clark Corp. shares were down 4% in premarket trading after the company missed on fourth-quarter earnings. The consumer goods company said it had net income of $344 million, or 91 cents per share, for the quarter, after a loss of $63 million, or 22 cents, in 2014. Adjusted earnings per share were $1.42 for the quarter versus the FactSet consensus of $1.43. Sales totaled $4.5 billion for the quarter, down 6% from $4.8 billion the year before. The FactSet consensus was $4.6 billion. The company said EPS was negatively impacted by unfavorable currency exchange rates, increased marketing spend, research and general spending. Kimberly-Clark removed the Venezuelan business from its balance sheet, which the company said "reflects the continued deterioration of conditions in the country." Kimberly-Clark expects 2016 sales in the range of flat to down 3% and adjusted EPS between $5.95 to $6.15, up from $5.76 in 2015. They are planning a share buyback between $600 million and $900 million, subject to market conditions. Kimberly-Clark shares are up 13.5% for the past 12 months while the S&P is down 7.1% for the same period.
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