Kimberly-Clark Corporation ( KMB ) shares are trading lower following mixed second-quarter earnings.

Kimberly-Clark ( KMB ) reported quarterly adjusted earnings per share of $1.96 (+19%), beating the analyst consensus of $1.71.

Quarterly revenues of $5.029 billion, missing the street view of $5.109 billion.

Sales in the second quarter reflected a 2% decline from the previous year, influenced by a 5% currency translation impact and a 1% decrease due to the divestiture of the Tissue and K-C Professional business in Brazil in June 2023.

Innovation-led volume gains, effective cost management, and productivity drove substantial EPS expansion.

Also Read: Automotive Manufacturer Polaris Shares Tumble On Q2 Earnings Miss And Guidance Cut Amid Inventory Focus

The company’s adjusted gross margin was 36.9%, up 290 basis points versus the prior year, driven by organic net sales growth and gross productivity gains.

Net interest expense was $63 million versus $67 million in the prior-year period.

The company exited the quarter with cash and equivalents worth $1.163 billion. Inventories totaled $1.915 billion.

Outlook: Kimberly-Clark ( KMB ) still expects FY24 organic net sales to grow at a mid-single-digit rate.

Reported net sales are still expected to be negatively impacted by 400 basis points of currency translation and 120 basis points from divestitures.

Adjusted EPS is now expected to grow at a mid-to-high teens percentage rate on a constant-currency basis, an increase from previous expectations of low-teens growth.

“Our focus is to deliver high-quality consumer solutions at every price point, increase our operational scale, and enhance our long-term potential,” said Kimberly-Clark ( KMB ) Chairman and CEO Mike Hsu. 

“We’re excited about our opportunities to capitalize on our momentum to deliver our enduring goal of enhancing value for all our stakeholders,” Hsu added.

Price Action: KMB shares are trading lower by 3.9% to $138.51 at last check Tuesday.

Read Next:

Tesla, Alphabet, GM, Ford Lead Earnings Parade This Week As Market Struggles To Sustain The Summer Rally