Household products company Kimberly-Clark (NYSE:KMB) will be announcing earnings results tomorrow morning. Here’s what to look for.
Kimberly-Clark missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $4.95 billion, down 3.5% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue estimates.
Is Kimberly-Clark a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kimberly-Clark’s revenue to decline 2.2% year on year to $4.86 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.51 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kimberly-Clark has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Kimberly-Clark’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. WD-40 delivered year-on-year revenue growth of 9.3%, beating analysts’ expectations by 4.1%, and Procter & Gamble reported revenues up 2.1%, topping estimates by 1.3%. WD-40 traded down 5.8% following the results while Procter & Gamble was up 2.8%.
Read our full analysis of WD-40’s results here and Procter & Gamble’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.9% on average over the last month. Kimberly-Clark is down 1.7% during the same time and is heading into earnings with an average analyst price target of $144.62 (compared to the current share price of $128.41).
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