What Happened?
Shares of household products company Kimberly-Clark (NYSE: KMB) jumped 4.8% in the afternoon session after the company reported mixed second-quarter results that featured the strongest sales volume growth in five years and an earnings-per-share figure that surpassed analyst expectations. Investors looked past a headline revenue figure that missed expectations, which the company attributed to recent business divestitures. Instead, market participants focused on a 3.9% rise in organic sales, a key metric that shows the health of the core business. This growth was fueled by the strongest increase in sales volume in five years, suggesting robust consumer demand. Furthermore, the company's adjusted earnings per share of $1.92 comfortably surpassed analyst forecasts. The strong underlying performance and profit beat signaled that the company's strategic plans found success.
After the initial pop the shares cooled down to $129.88, up 4.2% from previous close.
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What Is The Market Telling Us
Kimberly-Clark’s shares are not very volatile and have only had 1 move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Kimberly-Clark is down 0.6% since the beginning of the year, and at $129.88 per share, it is trading 12.5% below its 52-week high of $148.35 from September 2024. Investors who bought $1,000 worth of Kimberly-Clark’s shares 5 years ago would now be looking at an investment worth $856.73.
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