Kleenex Parent Kimberly-Clark’s Stock Sinks on Lowered Profit Forecasts

Kleenex Parent Kimberly-Clark’s Stock Sinks on Lowered Profit Forecasts

Kleenex Parent Kimberly-Clark's Stock Sinks on Lowered Profit Forecasts

Key Takeaways

Shares of Kimberly-Clark (

KMB

) fell Tuesday after the consumer goods company lowered full-year projections amid uncertainty around the
Trump administration’s tariffs
.

The parent company of Kleenex, Huggies, and several other brands reported adjusted
earnings per share (EPS)
of $1.93 on sales of $4.84 billion. Analysts polled by Visible Alpha expected $1.90 and $4.89 billion, respectively.

Adjusted EPS, Operating Profit Outlooks Lowered

Weighing on the company’s stock was its decision to lower its full-year guidance “to reflect a reassessment of its cost base, including potential impacts from changes in the global geopolitical landscape.” Kimberly-Clark now sees adjusted operating profit and adjusted EPS to each be “flat to positive on a constant-currency basis.”

“The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year,” CEO MikeĀ Hsu said. “However, we remain confident in our ability to offset these costs over time and unlock our long-term potential.”

Kimberly-Clark shares were down 2.4% soon after the markets opened Tuesday. They entered the day up about 7% since the start of this year.


UPDATE—This article has been updated with the latest share price information.

Read the original article on
Investopedia

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