Dividend Growth Forum

Full Version: KMB
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Has anyone been following KMB for long enough that can help me understand what happened in Q3 2015? The P/E is ridiculously high but the stock price kept going up from that moment on.

P/E

[Image: sIFrWol.png]

Price
[Image: KB9PaCW.png]


It raised my attention because it's an aristocrat and it was down roughly 3% this morning.
The second quarter saw a $1.322 billion charge due to pension settlements that resulted in a net income of -$0.83 for the quarter. Adjusted earnings were $1.41, which is why you saw the spike in PE calculated with reported earnings. This compares with a 21.4 PE based on adjusted earnings of $5.76.

In short, what you are seeing is the difference between GAAP and non-GAAP earnings being used to calculate the PE.
Thanks Eric. Great explanation.