The 2024 Q4 earnings season has picked up notable steam this week, with the reporting docket stacked. Among the bunch of companies expected to report in the coming days include a few consumer staples titans such as Procter & Gamble PG, Johnson & Johnson JNJ, and Kimberly-Clark KMB.

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Let’s take a closer look at how each stacks up heading into their respective quarterly releases.

PG Sees Downward Revisions

PG shares have faced some turbulence over the past six months, down roughly 3% but modestly outperforming the Zacks Consumer Staples sector. Analysts have shown some bearishness for the quarter to be reported over the last several months, with the $1.86 Zacks Consensus EPS estimate down 2% over the period and suggesting 1% year-over-year growth.

Top line revisions have primarily followed the same path, with forecasted sales of $21.6 billion 0.7% higher than the year-ago figure.

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While growth is muted, the company’s gross margin has expanded nicely, leading to stronger profitability overall. Please keep in note that the chart is on a trailing twelve-month basis. It’s also worth noting that the company reaffirmed its current year guidance in its latest release, likely limiting any potential spooky surprises.

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The valuation picture here isn’t overly enticing, with the current 22.5X forward 12-month earnings multiple in line with the five-year median and beneath five-year highs of 26.7X. The PEG ratio works out to 3.5X, notably rich for the growth expected.

The stock sports a Style Score of ‘D’ for Value.

JNJ Margins Come Under Pressure

JNJ shares have also faced pressure over the past six months, down 2% but again outperforming the Zacks Consumer Staples sector by a fair margin. Similar to PG, analysts have shown slight bearishness for the release, with the $2.00 Zacks Consensus EPS estimate down modestly over the last several months and suggesting a 13% decline year-over-year.

Still, decent sales growth is forecasted, with JNJ’s top line expected to expand 5.3% year-over-year.

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However, the margins picture here has become quite negative, partly explaining the big profitability crunch and declining EPS. Positive commentary surrounding margins would be a major boost for the stock, perhaps sparking some bullish action.

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The valuation picture here is more enticing than PG, with the current 13.9X forward 12-month earnings multiple well beneath the 16.1X five-year median and 19.1X five-year highs. The PEG works out to 2.4X, somewhat steep but otherwise beneath the 2.7X five-year median.

The stock sports a Style Score of ‘B’ for Value.

KMB Shares Face Turbulence

Kimberly-Clark shares have been the worst performers of the bunch over the last six months, declining roughly 10% and widely underperforming relative to the Zacks Consumer Staples sector. Still, the EPS outlook for the release has largely remained stable, with the $1.50 per share expected down just a penny over recent months and suggesting flat growth year-over-year.

Top line revisions paint the same story, with revenue expected to fall 3% year-over-year.

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The margins picture for KMB has been bright for some time now, as we can see below. The margin expansion has undoubtedly been a positive but seemingly ignored by investors, with shares essentially flat on a three-year timeframe.

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The valuation picture is fair, with the current 16.7X forward 12-month earnings multiple beneath the five-year median and five-year highs. The PEG ratio works out to 3.6X, undoubtedly a bit steep but otherwise in line with the five-year median.

The stock sports a Style Score of ‘C’ for Value.

Bottom Line

With the 2024 Q4 earnings season in high gear, we’ll be hearing from a plethora of companies in the coming weeks.

And three big names from the Zacks Consumer Staples sector – Procter & Gamble PG, Johnson & Johnson JNJ, and Kimberly-Clark KMB – are among the bunch.

Margins will likely be a key item to watch in each’s respective release, with top line growth also a key contributing factor. Given their defensive nature, no spooky post-earnings swings should come.

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