Kimberly-Clark posts preliminary results above estimates, China clears formamide claims

Oct 15 (Reuters) - Kimberly-Clark KMB.O on Thursday reported preliminary third-quarter sales and profit above expectations on the back of steady demand and cost-saving measures.

The results come hours after Chinese authorities said no formamide was detected in the company's products, disproving Chinese social media claims that Huggies diapers contained the toxic substance, which had hurt sales.

Here are more details:

• Shares of the company, which also reaffirmed its full-year 2026 targets, rose 3% in premarket trading

• The Dallas-based company expects third-quarter net sales of $4.13 billion, compared with analysts' average estimate of $4.10 billion, according to data compiled by LSEG

• It expects adjusted profit of $1.70 per share for the quarter, above estimates of $1.59

• The company, which is set to complete its roughly $40 billion acquisition of Kenvue KVUE.N by the end of the year, said the preliminary results would "open the calendar to accommodate potential close-related activities, including debt issuance"

• The investigation update removes a meaningful overhang on the stock, RBC analyst Nik Modi said.

• Kimberly-Clark will release its third-quarter results on November 5