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Kimberly-Clark Corp. announced stronger-than-expected fourth-quarter results amid robust demand for its personal care and tissue products during the coronavirus pandemic. Shares of the consumer product company closed 3.3% higher on Monday following the release

Additionally, Kimberly-Clark’s (KMB) raised its quarterly dividend and introduced a new share repurchase plan.

The company's 4Q earnings of $1.69 per share declined 1.2% year-over-year due to lower operating profits but still beat analysts’ expectations of $1.62 per share. Meanwhile, the company’s 4Q sales of $4.84 billion topped the consensus estimates of $4.73 billion and grew 6% year-over-year.

Kimberly-Clark said that quarterly revenues were driven by higher volumes and pricing across the personal care and consumer tissue segment. Furthermore, the Softex Indonesia acquisition increased its top line by 2%. However, adverse foreign currency exchange rates dented sales growth by 1%. Organic sales grew 5% in the quarter.

The company raised its dividend by 6.5%, marking the 49th consecutive hike in annual dividends. The new dividend of $1.14 per share will be paid on Apr. 5 to shareholders of record as of Mar. 5. This translates into an annual dividend of $4.56 per share, which implies a dividend yield of about 3.34%.

The board also authorized a new $5 billion share repurchase program. The company’s existing $5 billion share repurchase authorization is expected to be completed by the end of 2021. 

As for 2021, Kimberly-Clark foresees adjusted EPS in the range of $7.75-$8. Analysts’ 2021 EPS estimate stands at $7.77. The company forecasted 2021 revenue growth in the range of 4%-6%, which is higher than analysts’ growth expectations of 2.4%. Further, the company expects its organic sales to increase by 1%-2%. (See KMB stock analysis on TipRanks)

Ahead of the earnings results on Jan. 21, Deutsche Bank analyst Stephen Powers lowered the stock’s price target to $144 (5.5% upside potential) from $150 and maintained a Hold rating. The analyst had expected lower profits than the consensus as Kimberly-Clark is focusing on “its reinvestment priorities” for 2021.

From the rest of the Street, the stock scores a Hold analyst consensus based on 3 Holds, 1 Sell, and 2 Buys. The average analyst price target of $146.50 implies upside potential of about 7.3% to current levels. Shares have declined by about 2% over the past year.

Meanwhile, KMB scores a perfect 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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Linde Plc announced a stock repurchase program of up to $5 billion, as its its current $6 billion stock buyback plan expires on Feb. 1, 2021. Additionally, the multinational chemicals company raised its quarterly dividend.

Linde (LIN) said that under the $5 billion buyback program, the company may repurchase up to 15% of its currently outstanding shares in the period starting from Feb. 1, 2021, through July 31, 2023. The company said, “The purpose of the program shall be to reduce the share capital or to meet obligations under Linde plc equity awards.”

The company has also lifted its quarterly cash dividend by 10% to $1.06 per share, which will be paid on Mar. 22 to stockholders of record as of Mar. 5. The new dividend implies an annual dividend of $4.20 per share and reflects a dividend yield of 1.66%.

Linde’s CEO Steve Angel said, “As an integral part of Linde's capital allocation policy, the company is committed to increasing its dividends annually.” (See LIN stock analysis on TipRanks)

Earlier on Dec. 7, Barclays analyst Duffy Fischer upgraded Linde to Buy from Hold and raised the price target to $285 (12.6% upside potential) from $275. In a note to investors, the analyst said that the company’s EBITDA has improved in each quarter of 2020, and it "can do even better."

Overall, the rest of the Street has a bullish outlook on the stock, with a Strong Buy analyst consensus based on 12 Buys and 3 Holds. The average analyst price target of $285.64 implies upside potential of about 12.9% to current levels. Shares have gained about 22.6% over the past year.

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