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Kimberly-Clark Slides on Earnings Miss and Lowered Guidance

Kimberly-Clark says the quarter 'reflects continued pandemic-driven volatility.'
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Kimberly-Clark  (KMB)  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.