Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Earnings Wrap: Kimberly Clark, Sprint, Rockwell Collins, More

The start of another big earnings week is here, with heavyweights like Facebook Inc (NASDAQ:FB) scheduled to announce their quarterly results later this week. In this article we’ll run through five companies’ earnings reports which were issued before the morning bell and see how those companies fared in their latest quarter and how the market is receiving their performance this morning.

Those companies are Kimberly Clark Corp (NYSE:KMB), Westinghouse Air Brake Technologies Corp (NYSE:WAB), Sprint Corp (NYSE:S), Rockwell Collins, Inc. (NYSE:COL), and Roper Technologies Inc (NYSE:ROP). We’ll also use hedge fund sentiment to see what traders think of these companies’ long-term potential.

At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).

abacus, earnings, money, counting

Double Beat Not Enough for Kimberly Clark

Consumer Products Giant Kimberly Clark Corp (NYSE:KMB) is down by 1.52% this morning despite its top- and bottom-line second quarter results beating analysts’ expectations. Sales of $4.59 billion topped the $4.57 billion consensus estimate, while adjusted earnings per share came in at $1.53, ahead of the consensus mark by $0.05. Sales came in slightly lower year-over-year, being heavily impacted by currency headwinds, while EPS showed a huge improvement from a loss of $0.83 a year earlier. The company’s consumer tissue segment, headlined by its Kleenex and Scott brands, did $1.49 billion in sales during the quarter, while its personal care unit headlined by Huggies managed $2.28 billion in sales. Each unit’s sales were down slightly year-over-year due to currency exchange, while volumes rose.

A dividend aristocrat, Kimberly Clark Corp (NYSE:KMB) was in the portfolios of 31 of the hedge funds tracked by Insider Monkey as of March 31. Those investors held $1.22 billion worth of the company’s shares, amounting to 2.50% of its float.

Follow Kimberly Clark Corp (NYSE:KMB)
Trade (NYSE:KMB) Now!

Sluggish Freight Group Derails Wabtec

Shares of Westinghouse Air Brake Technologies Corp (NYSE:WAB) have tumbled by 5.61% this morning following its second quarter earnings release. Sales fell by 15% year-over-year to $723.60 million, with the company’s Freight Group being hit particularly hard, with sales falling by 26% to $397.10 million. The Transit Group fared better, with sales rising by 5% to $326.50 million. Currency exchange was again a factor, impacting the company’s top-line by $9 million. Wabtec’s bottom-line resisted the top-line declines by remaining flat year-over-year at $1.05 per share, thanks partially to a 7% reduction in the float. With Freight expected to remain sluggish for the remainder of the year, Wabtec was forced to cut its top- and bottom-line guidance.

Westinghouse Air Brake Technologies Corp (NYSE:WAB) is a top stock pick of Cryder Capital, which held 219,165 shares of the company on June 30.

Follow Westinghouse Air Brake Technologies Corp (NYSE:WAB)
Trade (NYSE:WAB) Now!

We’ll check out the earnings reports of Sprint, Rockwell Collins, and Roper Technologies on the next page.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.