) reached a new 52-week high of $107.84 on Oct 28, following the
release of its third quarter 2013 results last week. Shares of
this Zacks Rank #2 (Buy) stock eventually closed at $107.31,
reflecting a year-to-date return of 27.4%.
The company's long-term estimated EPS growth rate is 7.88%.
Average volume of shares traded over the last three months came
in at approximately 1.690K.
On Oct 22, Kimberly-Clark reported its third quarter 2013
results, beating the Zacks Consensus Estimate on both counts.
Adjusted earnings of $1.44 per share also grew 7.5% from the
year-ago result of $1.34 per share. The upswing in the earnings
came from organic sales growth, cost savings, favorable tax rates
and lower share count, which made up for increased input costs
and currency headwinds.
Sales of this appliances and electronic retailer were almost
flat year over year at $5.26 billion in the third quarter.
Improvement in sales volumes, higher selling prices and favorable
product mix were offset by foreign currency headwinds, lost sales
in conjunction with European strategic changes and pulp and
tissue restructuring actions. Excluding the aforementioned
headwinds, organic sales grew 5% from the prior-year quarter.
Adjusted operating profit (excluding costs for the pulp and
tissue restructuring and European strategic changes) grew 1% to
$821 million, reflecting an increase in organic sales and $80
million of cost savings from the restructuring program. Adjusted
operating margin also improved 10 basis points to 15.6% in the
third quarter of 2013.
For 2013, Kimberly-Clark has increased the lower end of its
previously provided earnings guidance. The company now expects
adjusted earnings in the range of $5.65-$5.75, compared with the
prior range of $5.60-$5.75, which marks year-over-year growth of
8% to 10%.
We are encouraged by the company's leadership position in
several consumer product categories including diapers, paper
goods, and female personal care. Kimberly-Clark also focuses on
improving its products through innovation in order to remain
competitive and drive growth. It is well-positioned overseas and
has been investing in key emerging markets.
The company's restructuring program as well as its cost
reduction initiatives bode well for future operating performance.
The company's divestiture of some low-margin businesses in
certain markets, mostly in the consumer tissue segment also helps
the company to utilize its resources in more promising
Other Stocks to Consider
Other stocks in the consumer staples sector that are
performing equally well and are worth considering include
Energizer Holdings Inc
Pinnacle Foods Inc
The J.M. Smucker Co. Inc.
), all of them with a Zacks Rank #2.
ENERGIZER HLDGS (ENR): Free Stock Analysis
KIMBERLY CLARK (KMB): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
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