## Kimberly-Clark Earnings Preview: What to Watch for on October 22nd
Get ready for another round of crucial earnings news, as
Kimberly-Clark (KMB)
prepares to unveil its quarterly results onTuesday, October 22nd
. This announcement is a major event for investors, who will be eager to gauge the company’s continued progress and its outlook for the coming months.Analysts are currently projecting an earnings per share (EPS) of $1.70 for the quarter. But, beyond the headline numbers, there are several key areas to keep an eye on:
### Looking Back: A Positive Trajectory
The company’s recent track record has been encouraging. In the last quarter, Kimberly-Clark surpassed EPS estimates by $0.25, leading to a 3.41% surge in share price on the following day. This suggests that the company is effectively managing its operations and delivering strong results. Let’s take a closer look at their past performance and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $1.71 | $1.96 | 3.0% |
| Q1 2024 | $1.63 | $2.01 | 1.0% |
| Q4 2023 | $1.54 | $1.51 | 2.0% |
| Q3 2023 | $1.59 | $1.74 | -1.0% |
### Tracking Kimberly-Clark’s Stock Performance
As of October 18th, shares of Kimberly-Clark were trading at $145.41. Over the past 52 weeks, the stock has seen a positive climb of 19.84%. This robust performance is likely a reflection of investor confidence in the company’s future prospects. It will be interesting to see how the upcoming earnings report affects this trend.
### Analyst Opinions: A Mixed Bag
Understanding market sentiment and expectations is crucial for investors. The consensus rating for Kimberly-Clark is currently ‘Neutral’ based on 7 analyst ratings. This suggests a cautious outlook, with analysts expecting a balanced performance in the coming year. The average one-year price target stands at $147.86, implying a potential 1.68% upside from current levels. While this upside is relatively modest, it indicates that analysts are generally optimistic about the long-term potential of the company.
### Peer Comparison: Gauging Relative Performance
To provide a more comprehensive perspective, let’s compare Kimberly-Clark’s outlook with that of its major industry peers: Church & Dwight Co., Clorox, and Colgate-Palmolive.
| Company | Consensus Rating | 1-Year Price Target | Implied Upside/Downside |
|—|—|—|—|
| Church & Dwight Co. | Underperform | $103.58 | -28.77% |
| Clorox | Neutral | $152.42 | 4.82% |
| Colgate-Palmolive | Buy | $108.58 | 25.33% |
This comparison reveals a mixed bag of expectations. While Colgate-Palmolive enjoys a ‘Buy’ rating with a significant upside potential, Church & Dwight Co. faces an ‘Underperform’ rating and a substantial potential downside. Clorox, similar to Kimberly-Clark, has a ‘Neutral’ rating, suggesting a balanced outlook. This highlights the diversity of opinions within the consumer staples sector.
### Key Financial Metrics: A Deeper Dive
To understand Kimberly-Clark’s financial performance, let’s delve into some key metrics:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Kimberly-Clark | Neutral | -2.05% | $1.81B | 49.91% |
| Church & Dwight Co. | Underperform | 3.92% | $712.10M | 5.79% |
| Clorox | Neutral | -5.75% | $884M | 103.10% |
| Colgate-Palmolive | Buy | 4.89% | $3.07B | 414.16% |
Key Takeaways:
* Kimberly-Clark ranks at the bottom for Revenue Growth among its peers, reflecting a challenging environment for the company.
* It stands in the middle for Gross Profit, showcasing its ability to manage costs and generate profit from its core operations.
* Kimberly-Clark boasts the highest Return on Equity, demonstrating effective utilization of shareholder funds to drive growth.
### Understanding Kimberly-Clark: A Company Profile
Kimberly-Clark is a leading manufacturer in the tissue and hygiene realm. Its diverse portfolio includes popular brands like Huggies, PullUps, Kotex, Depend, Kleenex, and Cottonelle. The company also operates K-C Professional, which provides safety and sanitary products for businesses. With a significant presence in North America, Europe, Asia, and Latin America, Kimberly-Clark is a global player in its market.
### Financial Snapshot: A Look Under the Hood
*
Market Capitalization:
Kimberly-Clark’s market capitalization falls below industry averages, possibly due to factors such as growth expectations or operational capacity.*
Revenue Decline:
Kimberly-Clark experienced a revenue decline of approximately -2.05% during the 3 months period ending June 30, 2024, indicating a decrease in top-line earnings. This rate is lower than the average growth rate among peers in the Consumer Staples sector.*
Net Margin:
Kimberly-Clark’s net margin surpasses industry standards, signifying strong financial performance and effective cost management.*
Return on Equity (ROE):
Kimberly-Clark’s ROE falls below industry averages, suggesting potential challenges in effectively utilizing equity capital.*
Return on Assets (ROA):
Kimberly-Clark boasts a strong ROA, exceeding industry averages, reflecting efficient asset utilization and solid financial performance.*
Debt Management:
Kimberly-Clark’s debt-to-equity ratio remains below the industry average, indicating a reliance on less debt financing and a healthier balance between debt and equity, which is generally viewed positively by investors.### Stay Tuned for the Earnings Release
As the earnings release date approaches, keep an eye on Kimberly-Clark’s stock price and analyst commentary. The company’s performance will likely be a key indicator of the broader consumer staples sector’s health. Stay tuned for a detailed breakdown of the earnings call and its implications for investors.