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Kimberly-Clark Updates 1 Key Risk Factor
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Kimberly-Clark Updates 1 Key Risk Factor

Shares of personal care and consumer tissue products provider Kimberly-Clark, Corp. (KMB) have dropped 6.5% so far this year. The company’s brand portfolio includes Huggies, Kleenex, Scott, Kotex, Poise, Depend, GoodNites, Sweety, Softex, and Viva, catering to consumers across over 175 countries.

KMB’s recent fourth-quarter performance came in ahead of the Street’s estimates on both its top-line and bottom-line fronts.

On the back of higher organic sales, higher net selling prices, a favorable product mix coupled with strong performance in Personal Care and K-C Professional segments, revenue increased 3% year-over-year to $5 billion, beating estimates of $4.91 billion. Earnings per share at $1.30 came in ahead of expectations of $1.25.

Further, the company has upped its dividend per share by 1.8% to $1.16. The dividend is payable on April 4 to investors on record as of March 4.

With these developments in mind, let us take a look at the changes in KMB’s key risk factors that investors should know.

Risk Factors

According to the TipRanks Risk Factors tool, Kimberly-Clark’s top three risk categories are Macro & Political, Ability to Sell, and Production, contributing 3 each to the total 13 risks identified for the stock.

In its recent report, the company has added one key risk factor under the Macro & Political risk category. Compared to a sector average of 4 risk factors, KMB has 3 Macro & Political risk factors.

KMB highlighted the potential risks from climate change and sustainability matters to its business. It may be subject to lower availability or unfavorable pricing of water and other raw materials. Natural disasters and extreme weather events could disrupt its operations and supply chain.

Further, climate change concerns could mean legal and regulatory requirements. If KMB fails to achieve its sustainability goals or is perceived to not act responsibly in sustainability matters, then its reputation and business could see an adverse impact.

Hedge Fund Activity

According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in Kimberly-Clark by 131.1 thousand shares in the last quarter, indicating a very positive hedge fund confidence signal in the stock based on activities of 9 hedge funds. Notably, Ray Dalio’s Bridgewater Associates has a holding in KMB worth about $105.2 million.

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