By Kimberly-Clark, the renowned consumer-products firm, experienced a decrease in shares following a disappointing earnings report. However, investors can take comfort in the company’s decision to increase its dividend.
In the fourth quarter, Kimberly-Clark posted adjusted earnings of $1.51 per share, falling short of Wall Street’s expectations of $1.54 as reported by FactSet. This figure is also lower than the adjusted earnings of $1.54 per share reported in the same period a year ago.
Additionally, the company’s sales for the quarter came in at $4.97 billion, slightly below analysts’ forecast of $4.99 billion. Comparatively, sales in the year-ago quarter stood at $4.96 billion.
Despite these challenges, CEO Mike Hsu expressed confidence in the company’s strategic foundation and financial position for the year ahead. Hsu stated, “Moving forward, we will continue to invest in differentiating our brands and enhancing our capabilities while maintaining a disciplined cost structure in our next phase of growth.”
Looking ahead to 2024, Kimberly-Clark’s management expects organic net sales to grow at a low- to mid-single-digit percentage compared to the previous year. Furthermore, adjusted earnings per share are projected to experience high-single-digit growth on a constant-currency basis.
In a separate press release, Kimberly-Clark announced a 3.4% increase in its quarterly dividend, raising it to $1.22 per share. The dividend will be payable on April 2 to stockholders of record as of March 8. Notably, this marks the 52nd consecutive year in which the company has raised its dividend.
Kimberly-Clark’s stock saw a decline of 4.6% in premarket trading, reaching $119.24. In contrast, S&P 500 futures experienced a 0.6% increase.
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