Revenue missed estimates as cautious consumer spending, supply disruption and China-related weakness pressured results, while the company lowered growth expectations.
Kimberly-Clark reported second-quarter earnings per share of $1.80 and revenue of $4.19 billion, both below analyst expectations, as cautious consumer spending, a fire at a distribution center and continued disruption tied to false diaper-quality allegations in China weighed on performance. The maker of Huggies, Kleenex and Pull-Ups posted revenue slightly below the $4.22 billion consensus for the quarter ended June 30, and lowered its growth expectations. Earlier figures in the existing report had cited adjusted earnings per share of $2.12, but the latest update says earnings per share were $1.80 against expectations of $2.01. Kimberly-Clark has said independent government-certified testing confirmed the safety and quality of its products, though the China controversy remains a near-term headwind. The company also previously said net income was $345 million, or $1.04 a share, down from $509 million, or $1.53 a share, a year earlier, while gross margin expanded to 38.3% and adjusted operating profit rose 6.2% to $757 million.