[ACCESSWIRE]
Upcoming AWS Coverage on Colgate-Palmolive Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 1, 2017 / Active Wall St. announces its post-earnings coverage on Kimberly-Clark Corp. (NYSE: KMB). The Company posted its fourth quarter fiscal 2016 results on January 24, 2017. The maker of Kleenex tissues and Huggies diaper surpassed markets earnings expectations. Register with us now for your free membership at:
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One of Kimberly-Clark's competitors within the Personal Products space, Colgate-Palmolive Co. (NYSE: CL), reported its Q4 2016 and year-end earnings results on Friday, January 27. AWS will be initiating a research report on Colgate-Palmolive in the coming days.
Today, AWS is promoting its earnings coverage on KMB; touching on CL. Get our free coverage by signing up to:
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Earnings Reviewed
For the three months' period ended on December 31, 2016, Kimberly-Clark reported sales of $4.544 billion, which was marginally above sales of $4.539 billion in Q4 2015 and slightly below analysts' consensus of $4.55 billion. During the reported quarter, the Company's organic sales were up 1%, as volumes increased 2%, while the combined impact of changes in net selling prices and product mix reduced sales by 1%. Changes in foreign currency exchange rates lowered sales by 1%. For FY16, Kimberly-Clark reported sales of $18.2 billion, down 2% compared to sales of $18.59 billion in the year-ago same period.
For Q4 2016, Kimberly-Clark's operating profit was $839 million compared to $630 million in Q4 2015. The Company's Q4 2016 results included benefits from $140 million in cost savings from it FORCE (Focused on Reducing Costs Everywhere) program and $25 million of savings from the 2014 Organization Restructuring. Input costs decreased $5 million, driven by lower fiber costs. The Company's adjusted operating profit saw an increase of 10% to $859 million in Q4 2016 compared to $779 million in Q4 2015. For FY16, Kimberly-Clark's operating profit totaled $3.32 billion versus $1.61 billion in FY15.
Kimberly-Clark's Q4 2016 net income was $505 million and diluted net income per share was $1.40 compared to net income of $333 million and diluted net income per share of $0.91 in Q4 2015. The comparison benefited from cost savings and a charge in Q4 2015 related to deconsolidating the Company's Venezuelan business at the end of FY15. The Company's Q4 2016 adjusted earnings per share were $1.45, against $1.42 in Q4 2015, beating Wall Street's estimates of $1.42 per share.
Kimberly-Clark's FY16 diluted net income per share was $5.99 compared to $2.77 in FY15. FY16 adjusted earnings per share were $6.03 in 2016, up 5% compared to $5.76 in FY15.
Organization Restructuring
In October 2014, Kimberly-Clark initiated a restructuring program in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of the Company's health care business. The Company achieved its total restructuring savings objective one year ahead of target, as annualized pre-tax savings from the restructuring amounted to $140 million through the end of FY16 compared to the original estimates for savings of $120 million to $140 million by the end of FY17.
Business Segment Results
Personal Care Segment: During Q4 2016, Kimberly-Clark's Personal Care segment reported sales of $2.2 billion, up 1% on a y-o-y basis. The division's volumes increased 3%, while the combined impact of changes in net selling prices and product mix reduced sales by 1%. Personal Care segment reported Q4 2016 operating profit of $495 million up 5% on a y-o-y basis. The comparison benefited from cost savings, partially offset by manufacturing-related cost increases and unfavorable currency effects.
Consumer Tissue Segment: During Q4 2016, Kimberly-Clark's Consumer Tissue segment sales declined 1% to $1.5 billion as currency rates were unfavorable by 1%. The division's operating profit of $295 million in the reported quarter increased 13% on a y-o-y basis. The comparison benefited from cost savings and input cost deflation, which was partially offset by slightly lower net selling prices and unfavorable currencies.
K-C Professional (KCP) Segment: Kimberly-Clark's KCP segment Q4 2016 sales of $0.8 billion were essentially even on a y-o-y basis. Volumes increased 1%, while changes in currency rates reduced sales 1%. The division's operating profit of $146 million decreased 7%. The comparison was impacted by input cost inflation and higher marketing, research, and general spending, which was partially offset by organic sales growth and cost savings.
Cash Flow and Balance Sheet
Kimberly-Clark reported that cash provided by operations in Q4 2016 was $871 million, up 31% versus $665 million in the year-ago same period. FY16 cash provided by operations was $3.23 billion, an increase of 40% compared to $2.31 billion in FY15.
The Company's capital spending for Q4 2016 was $189 million and $258 million in Q4 2015. The Company repurchased 1.9 million shares at a cost of $225 million in Q4 2016, bringing FY16 repurchases to 6.0 million shares at a cost of $750 million. Total debt was $7.6 billion at the end of 2016 and $7.8 billion at the end of 2015.
The Company's Board of Directors approved a 5.4% increase in the quarterly dividend, thus taking the dividend to $0.97 per share. This is the 45th consecutive annual increase in the Company's dividend. The dividend will be payable on April 04, 2017, to stockholders of record on March 10, 2017.
Outlook
Kimberly-Clark's net sales in FY17 are expected to be similar to FY16, including organic sales growth of approximately 2%. Diluted net income per share for FY17 is anticipated to be $6.20 to $6.35 compared to $5.99 in FY16, and up 3% to 5% versus adjusted earnings per share of $6.03 in 2016. The Company expects cost savings of at least $400 million from the FORCE program. Kimberly-Clark is forecasting capital spending of $850 million to $950 million in FY17 and share repurchases between $800 million and $1,000 million, subject to market conditions.
Stock Performance
At the closing bell, on Tuesday, January 31 2017, Kimberly-Clark's stock marginally climbed 0.45%, ending the trading session at $121.13. A total volume of 2.86 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.89 million shares. In the last month and previous three months, shares of the Company have advanced 5.26% and 6.60%, respectively. Moreover, the stock gained 6.14% since the start of the year. The stock is trading at a PE ratio of 20.23 and has a dividend yield of 3.20%.
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SOURCE: Active Wall Street