Shares of Kimberly-Clark (NYSE: KMB) , which makes paper goods, diapers, and personal care products, among other things, rose dramatically at the open on April 22, gaining as much as 10.5% in the first hour of trading. The big news was the company's pre-market earnings release, which investors clearly liked.
On the top line, Kimberly-Clark reported first-quarter 2022 sales of $5.1 billion, which was up roughly 7% from the same quarter in 2021. Analysts had been looking for something closer to $4.9 billion. The big number on the sales front, however, was the company's huge 10% organic sales advance, which was driven by sales mix (2 percentage points), volume growth (2 percentage points), and price increases (6 percentage points). These three numbers are notable because they mean that customers were buying higher-margin products (mix), buying more overall (volume), and willing to absorb fairly material product price increases (price). That's a very strong showing in the face of inflation .
Image source: Getty Images.
For further details see:
Why Kimberly-Clark Stock Jumped 10.5% at the Open Today