AUS
NZ
UK
CA
USA
IND
Highlights
- Kimberly-Clark Corporation’s (NYSE:KMB) net sales rose 7% YoY to US$5.0 billion.
- Otis Worldwide Corp’s (NYSE:OTIS) net sales were US$3.6 billion, up 10.8% YoY.
- KMB lowers its annual revenue outlook, while OTIS raises guidance on strong Q3 results.
Personal care company Kimberly-Clark Corporation and elevator maker Otis Worldwide Corp announced strong third-quarter revenue growth before the opening bell on Monday.
Here is a snapshot of their quarterly performance.
Kimberly-Clark Corporation (NYSE:KMB)
The Texas-based Kimberly-Clark’s net sales were up 7% YoY to US$5.0 billion compared to US$4.7 billion in Q3 the previous year. In addition, its organic sales were up 4% in the quarter.
Segment-wise
The Personal Care segment sales rose by 14% to US$2.7 billion, Consumer Tissue segment sales were US$1.5 billion, down 5%, K-C Professional (KCP) segment sales were US$0.8 billion, up 13%, and a balance of US$16 million came from corporate and other areas.
Its operating profit was US$657 million in Q3 2021 compared to US$666 million in Q3 2020.
The net income was US$469 million, down 1% compared to the net income of US$472 million in the September quarter of 2020. However, the income per share diluted increased to US$1.39 against US$1.38 in the same period a year ago. The adjusted earnings per share were US$1.62.
The company’s full-year stock repurchases fell to approximately US$400 million, the lower end of the previous range of US$400 to US$450 million.
Its total debt was US$8.9 billion as of September 30, 2021.
Also Read: Top 7 REITs with over 50% YTD returns to explore
Outlook for full-year 2021
The company expects a net sales increase between 1% and 2% against the prior forecast of between 1% and 4%. The adjusted operating profit is to decline by between 20% and 22% YoY, compared to the previous projection of 11% and 14%. The adjusted EPS to remain between US$6.05 and US$6.25 and capital spending to be in the range of US$1,000 and US$1,100 million, down from the prior outlook of US$1,100 and US$1,200 million.
The diluted net income per share is expected to be between US$5.15 and US$5.60 and adjusted earnings per share between US$6.05 and US$6.25.
The revised outlook for full-year 2021 reflects significantly higher input costs or inflation.
Kimberly Clark is based in Dallas, Texas. Its current market capitalization is US$44.8 billion, and its P/E ratio is 22.66. With a dividend yield of 3.43%, KIM’s annualized dividend is US$4.56.
It has operations in 34 countries, and its products are sold in some 175 countries. The stock closed at US$133.04 on Oct 22, 2021.
Also Read: American Express (AXP) Q3 income up 70%, Honeywell (HON) sales up 9%
Source – Pixabay
Also Read: 5 industrial stocks with over 40% YTD returns to explore
Otis Worldwide Corp (NYSE:OTIS)
The Connecticut-headquartered Otis’ net sales were US$3.6 billion, up 10.8% increase YoY. Its organic sales were up 8.1%.
Segment-wise
The organic sales were up 18.1% in its New Equipment segment to US$1.68 billion, and Service sales were at US$1.94 billion, up 5.1%, while the new equipment orders increased by 3.8%.
Its GAAP operating profit was US$542 million, an increase of US$88 million from the previous year. In addition, the GAAP operating profit margin grew 110 basis points to 15.0%.
GAAP earnings per share (EPS) diluted were US$0.77, an increase of 26.2%, compared to US$0.61 per share diluted in Q3 of 2020.
The cash from operations was US$355 million, and free cash flow was US$324 million as of September 30, 2021. The company repurchased US725 million worth of shares year-to-date. It also announced a cash tender offer to buy the remaining 49.98% interest in Zardoya Otis.
Also Read: Six investment myths one should stop assuming about
Outlook for full-year 2021
The company expects a net sales increase in the range of 11.8% and 12.3%, while organic sales would grow between 8.5% and 9.0%.
It expects Organic New Equipment sales to increase between 15.0% and 15.5%, and Organic Service sales by around 4.0%. OTIS anticipates the adjusted operating profit to be between US$2.18 billion and US$2.19 billion, up from US$260 million and US$270 million at actual currency, and adjusted EPS of around US$2.95. The free cash flow is to be in the range of US$1.5 billion and US$1.55 billion.
The elevator and escalator manufacturing company has over 69,000 employees. It has a presence in more than 200 countries with around 2.1 million customers globally.
The stock closed at US$85.63 on Oct 22, 2021.
Also Read: 7 hot S&P 500 companies that gave over 30% return in 3 months
Bottomline
The KMB stock price fell 5% YTD, while the OTIS stock gained 23% YTD. On the other hand, the NYSE Composite Index increased by 18% YTD. Stock markets can be volatile sometimes. Hence, investors should weigh the companies carefully before investing in the stock market.
