Kimberley-Clark, NextEra stocks trade flat after Q2 results, EPS forecast

Summary

  • Kimberly-Clark (NYSE: KMB) cuts EPS expectations for full-year 2021 to US$6.65-US$6.90 from US$7.30-US$7.55.

  • NextEra Energy (NYSE: NEE) expects EPS to be US$2.55-US$2.75 for 2022 and US$2.77-US$2.97 in 2023.

  • KMB share was trading 0.66% up at 1:44 pm ET, and NEE was trading 1.20% up at 1:01 pm ET.

The stocks of Kimberly-Clark Corporation (NYSE: KMB) and NextEra Energy, Inc. (NYSE: NEE) were marginally up following their second quarter results on Friday morning.

The KMB stock was trading at US$135.84, up 0.66%, at 1:44 pm ET, while NEE stock was trading at US$77.03, up 1.20%, at 1:01 pm ET after declaring their June quarter earnings.

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KMB is a tissue paper products maker founded in 1872. Its brands include Huggies, Kotex, Depend, Pull-Ups, Kleenex, and Cottonelle, with a presence in over 175 countries. For Q2, the company reported net sales of US$4.7 billion, a 2% increase year-over-year. 

Its net income attributable to the company was US$404 million compared to US$681 million in the prior year’s quarter, reflecting a 41% decrease. Its net income per share diluted was US$1.20 against US$2.00 in the same quarter of 2020. 

Its personal care segment sales increased 13%. Consumer Tissue Segment sales were US$ 1.4 billion, decreased 13%. K-C Professional (KCP) Segment sales increased 6% to US$0.8 billion.


KMB expects adjusted earnings per share to be within US$6.65 to US$6.90 against the prior outlook of US$7.30 to US$7.55.


Its updated earnings outlook shows higher input cost and lower sales, partially offset by additional cost savings through using the FORCE program and controlled discretionary spending.

Its current market capitalization is US$ 45.3 billion, P/E ratio is 20.13, and dividend yield is 3.37%.

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NEE is a Florida-headquartered clean energy company founded in 1984. It runs seven commercial nuclear power plants in the US. Its June quarter 2021 adjusted earnings was US$1,395 million, or US$0.71 per share, compared to US$1,286 million, or US$0.65 per share, in the same quarter of 2020, reflecting approximately 9% increase year-over-year.

Its reportable segments are Florida Power & Light (FPL), Gold Power, NextEra Energy Resources. FPL’s net income increased by 9% YoY to US$819 million or US$ 0.42 per share.

Gulf Power reported a net income of US$63 million or US$0.03 per share, compared to US$55 million or US$0.03 per share in the previous year’s corresponding quarter.

NextEra Energy Resources earnings were US$574 million, or US$0.29 per share, reflecting an 8% increase, compared to US$531 million, or US$ 0.27 per share, for the previous year’s quarter.

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For 2022, NextEra Energy expects its adjusted earnings per share to be within US$2.55 to US$2.75 and for 2023, within US$2.77 to US$2.97, respectively. NEE’s market capitalization is US$151 billion. The P/E ratio is 36.43, and the current dividend yield is 2.03%. 
Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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