Personal hygeine products maker Kimberly Clark Corp (NYSE:KMB) saw its shares plummet this morning after its Q3 results and full-year outlook missed expectations.
The Irving, TX-based company reported Q3 EPS of $1.52, missing Wall Street estimates of $1.54. Revenue fell 2.5% from last year to $4.6 billion, also falling short of analysts’ view for $4.73 billion.
Kimberly-Clark noted that organic sales were essentially flat with the year-ago period, with sales up 3% in developing and emerging markets, but down in other segments.
Looking ahead, KMB lowered the top end of its full-year earnings outlook. The company now expects 2016 EPS of $5.95 to $6.05, compared with a prior range of $5.95 to $6.15. Analysts are looking for $6.07 per share for the year. Full-year organic sales growth is now expected to be 2%, down from a prior forecast of 3% to 5%.
The company also said its restructuring initiatives should be completed by the end of 2016. Those moves are expected generate $130 to $160 million worth of annual after-tax savings.
KMB commented via press release:
Chairman and Chief Executive Officer Thomas J. Falk said, “We experienced a more challenging economic and competitive environment in the third quarter. Nonetheless, our market share positions are broadly healthy. We achieved strong cost savings, improved margins and increased cash flow in the quarter. We also allocated capital in shareholder-friendly ways. Our focus remains on continuing to compete effectively in the near-term as we execute our Global Business Plan strategies for long-term success.”
KMB shares fell $5.08 (-4.25%) to $114.50 in premarket trading Monday. Prior to today’s report, KMB stock had fallen 6.06% year-to-date, versus a 4.96% gain in the benchmark S&P 500 index during the same period.