Kimberly-Clark Corporation KMB is likely to register top- and bottom-lines decline when it reports fourth-quarter 2024 earnings on Jan. 28. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to $1.50 per share, indicating a dip of 0.7% from the year-ago quarter’s reported figure. The consensus mark for 2024 earnings is pegged at $7.32 per share, implying an 11.4% increase from the prior year’s reported figure. KMB has a trailing four-quarter earnings surprise of 12.1%, on average.

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The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at $4.8 billion, which indicates a 2.6% decrease from the year-ago quarter. The consensus mark for 2024’s top line is pegged at almost $20 billion, which indicates a decline of 2.2% from the year-ago level.

Kimberly-Clark Corporation Price, Consensus and EPS Surprise

Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation Quote

Things to Know About KMB’s Upcoming Results

Kimberly-Clark is navigating a dynamic consumer and retail environment, with soft demand and retail inventory reductions impacting performance. In its last earnings call, management highlighted that it expects fiscal fourth-quarter results to reflect a challenging consumer landscape, with noticeable slowdowns in certain markets and professional channels, coupled with the ongoing risk of further retail inventory reductions, which could constrain year-over-year growth.

For 2024, management expects organic net sales growth of 3-4%, reflecting specific challenges related to changes in retail inventory levels. Our model suggests an organic net sales increase of 3.5% for the full year.

In terms of operating profit for the fourth quarter, the company expects minimal growth. Kimberly-Clark highlighted that it anticipates higher investments in its operations and brands, which is likely to offset sustained productivity savings. Management envisions 2024 adjusted operating profit growth in the mid-to-high teens percentage rate on a constant-currency (cc) basis.  The company expects adjusted earnings per share (EPS) to rise at a mid-to-high teens percentage rate at cc for the year.

Apart from this, Kimberly-Clark’s international presence keeps its exposure to risks of unfavorable currency translations. In addition, the company’s reduced exposure to low-margin private-label products is creating a near-term headwind for its revenues.  KMB’s reported net sales are likely to have reflected an unfavorable currency impact to the tune of nearly 400 bps (basis points) and a 120-bps headwind from divestitures in 2024.

Earnings Whispers for KMB Stock

Our proven model predicts an earnings beat for Kimberly-Clark this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

KMB carries a Zacks Rank #3 and has an Earnings ESP of +0.84%.

Other Stocks With the Favorable Combination

Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.

Church & Dwight CHD currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2024 EPS is pegged at 77 cents, which implies a roughly 18.5% increase year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.56 billion, which indicates growth of 2.4% from the figure reported in the prior-year quarter. CHD has a trailing four-quarter earnings surprise of roughly 10%, on average.

Tyson Foods, Inc. TSN currently has an Earnings ESP of +3.36% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter fiscal 2025 EPS is pegged at 79 cents, which implies a 14.5% increase year over year.

The Zacks Consensus Estimate for Tyson Foods’ quarterly revenues is pegged at $13.5 billion, which indicates growth of 1.2% from the figure reported in the prior-year quarter. TSN has a trailing negative four-quarter earnings surprise of roughly 57%, on average.

Sysco Corporation SYY currently has an Earnings ESP of +1.05% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at 93 cents, which implies a roughly 4.5% increase year over year.

The Zacks Consensus Estimate for Sysco’s quarterly revenues is pegged at $20.1 billion, which indicates growth of 4.3% from the figure reported in the prior-year quarter. SYY has a trailing negative four-quarter earnings surprise of roughly 0.2%, on average.

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Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report

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