Kimberly-Clark (KMB) - Get Kimberly-Clark Corporation (KMB) Report was sliding Friday after the maker of Scott and Cottonelle toilet paper and Kleenex tissues missed Wall Street's second-quarter earnings estimates and lowered its guidance.
Shares of the Dallas household supplies maker were down 3.2% to $130.76.
Kimberly-Clark reported net income of $404 million, or $1.19 a share, in the quarter, compared with $681 million, or $1.99 a share, a year ago.
Adjusted per-share earnings came to $1.47, falling short of the FactSet consensus of $1.71. Sales totaled $4.722 billion, up 2% from a year ago, but missed analysts' estimates of $4.766 billion.
Volumes in North America, the company said, particularly consumer tissue, were hurt by consumer and retailer de-stocking following the stock-up that occurred during the COVID-19 outbreak.
Looking ahead, Kimberly-Clark said it is now expecting full-year adjusted earnings of $6.65 to $6.90 a share, down from prior guidance of $7.30 to $7.55 a share.
The company said it expects sales to grow 1% to 4%, down from prior guidance of 3% to 5%.
In addition, Kimberly-Clark said it expects to complete a restructuring program in 2021 and to book charges of $2 billion to $2.1 billion.
"Our second-quarter reflects continued pandemic-driven volatility," Chairman and CEO Mike Hsu said in a statement. "We are facing significantly higher input costs and a reversal in consumer tissue volumes from record growth in the year ago period as consumers and retailers in North America continued to reduce home and retail inventory."
In April, Kimberly-Clark posted a 12% drop in first-quarter earnings on a 5% decline in revenue.