Kimberly-Clark Gains 3.7% After $4.19 Billion Q2 Miss as Cramer Backs Kenvue Deal
Updated
Updated · Yahoo Finance · Aug 14
Kimberly-Clark Gains 3.7% After $4.19 Billion Q2 Miss as Cramer Backs Kenvue Deal
1 articles · Updated · Yahoo Finance · Aug 14
Summary
Kimberly-Clark shares closed 3.7% higher after the company posted $4.19 billion in Q2 revenue, missing the $4.22 billion consensus and cutting its organic sales growth and earnings forecasts.
Jim Cramer said the stock's rebound showed resilience despite a China diaper issue, and argued CEO Mike Hsu is executing well enough for the Kenvue acquisition to become a major tailwind.
That optimism comes against weaker underlying signals: Kimberly-Clark's shares are still down 17% over the past year, about 15% of its float was sold short at July-end, and higher oil costs could pressure margins and debt.
The debate is sharpened by comparison with Procter & Gamble, whose June-quarter sales rose 2% and whose richer 20.9 forward P/E tops Kimberly-Clark's 14.93, reflecting stronger pricing power and steadier cash returns.