Two Companies Revised Their Outlook On Monday: One Hit A 52-Week Low, The Other A 52-Week High
Companies have an obligation to shareholders to provide visibility to their outlook in the form of guidance.
A company can provide financial and non-financial metrics as guidance which can be altered by management either higher or lower at any point. Typically speaking companies take advantage of an earnings release to either revise or reiterate their guidance.
Here is a summary of notable companies that made changes to their guidance on Monday.
>Kimberly Clark Hits New 52-Week Low On Guidance Reduction
Kimberly Clark, (NYSE: KMB) the multinational manufacturer of products made from natural or synthetic fibers, saw its stock hit a new 52-week low of $113.85 on Monday after the company not only reported a top-and-bottom-line miss in its third quarter earnings report but slashed its full year outlook.
The company narrowed the high-end of its full year fiscal 2016 earnings per share outlook to a range of $5.95 to $6.05 from a prior $5.95 to $6.15. The revised guidance now completely falls below Wall Street’s consensus estimate of $6.08.
Kimberly Clark also said that it is expecting its organic sales growth to now be around two percent after previously guiding towards a range of three percent to five percent.
T-Mobile Soars To New Highs
Shares of T-Mobile US (NASDAQ: TMUS), a cellular mobile service provider led by its eccentric CEO John Legere, soared to a new 52-week high of $51.35 after the company smashed past its earnings expectations in its third quarter earnings report and further wowed investors with a strong outlook.
T-Mobile’s earnings per share rose $0.27 year-over-year in the third quarter to $0.42 and nearly doubled the $0.23 per share analysts were expecting.
The company added two million total net additional customers in the quarter as the company takes advantage of unique advertising initiatives and positions itself as the “un-carrier.”
Given the incredibly strong quarter, management feels that momentum is on its side and this will continue through the end of the year. The company believes that its total postpaid net customer additions for the full year will be in a range of 3.7 million to 3.9 million, up from a prior guidance of 3.4 million to 3.8 million.
Naturally, a higher customer count translates to higher profit. The company now expects its EBITDA to fall in a range of $10.2 billion to $10.4 billion, up from a prior range of $9.8 billion to $10.1 billion.