Look at shares of Kimberly Clark (KMB) Monday morning, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment. He pointed out that shares were up several percent in the early going, despite how poorly the company has been doing.
Last week, he highlighted a downgrade on Kimberly Clark. However, he urged investors not to put too much blame on the executives. Instead, most companies in the consumer packaged goods space are suffering. This includes companies like Procter & Gamble (PG) and Unilever (UL) , he said.
Shares are about flat on Monday now, but were once higher despite not-so-great quarterly results. While Kimberly Clark beat on earnings expectations, it missed on revenue estimates as sales only grew 1.1% year over year.
This shows investors that stocks can rally even on poor results "when expectations are so unbelievably low," Cramer said. Kimberly Clark stock hit new 52-week lows last week, but so far haven't retested those levels. It will be interesting to see whether the stock can hold up over those levels.
So far for the first nine months of the year, sales are roughly flat. Earnings per share are up 2% so far for the same period, mostly thanks to a lower share count, a decline in its tax rate and an improved operating profit.
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