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Kimberly-Clark (KMB) Queued for Q1 Earnings: Things to Note

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Kimberly-Clark Corporation (KMB - Free Report) is likely to display year-over-year growth in the top line, when it reports first-quarter 2022 numbers on Apr 22. The Zacks Consensus Estimate for revenues is pegged at $4,895 million, suggesting a rise of 3.2% from the prior-year quarter’s reported figure.

Kimberly-Clark’s bottom line is likely to decline year over year in the first quarter. The Zacks Consensus Estimate for quarterly earnings has moved down by a couple of cents to $1.21 per share in the past 30 days. The projection suggests a decline of 32.8% from the figure reported in the prior-year quarter. In the last reported quarter, the personal care products company reported an earnings surprise of 1.6%. The company has a trailing four-quarter negative earnings surprise of 5.3%, on average.

KimberlyClark Corporation Price, Consensus and EPS Surprise

 

KimberlyClark Corporation Price, Consensus and EPS Surprise

KimberlyClark Corporation price-consensus-eps-surprise-chart | KimberlyClark Corporation Quote

 

Things To Note

Kimberly-Clark has been encountering high input costs in the past few quarters. In its last earnings call, management highlighted that it expects first-quarter 2022 earnings to decline sequentially. Earnings in the quarter are likely to have been hurt by intense commodity pressure and escalated inflation. Supply chain disruption stemming from the spread of the Omicron variant is also a headwind for Kimberly-Clark. Apart from this, the company’s Consumer Tissue segment has been witnessing soft sales in the past few quarters. These factors raise concerns for the company’s upcoming results.

Kimberly-Clark focuses on cutting costs and enhancing supply-chain productivity through the Focus on Reducing Costs Everywhere or FORCE Program. The company is also undertaking relevant pricing actions to counter inflation. KMB has been committed to its three key strategic growth pillars, which include focusing on improving its core business in the developed markets, speeding up growth in the Personal Care segment in developing and emerging markets and enhancing digital and e-commerce capacities.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Kimberly-Clark this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kimberly-Clark currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.62%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.

The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings is pegged at $2.10 per share, suggesting a 9.4% rise from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.48 billion, calling for a rise of 8.1% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.

Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +2.69% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings is pegged at 76 cents per share, suggesting 8.4% decline from the year-ago quarter’s reported number.

Church & Dwight’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.3 billion, calling for a growth of 3.6% from the figure reported in the prior-year quarter. CHD delivered an earnings beat of 8.8%, on average, in the trailing four quarters.

Kellogg Company (K - Free Report) currently has an Earnings ESP of +2.62% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports first-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings is pegged at 91 cents per share, suggesting an 18% decline from the year-ago quarter’s reported number.

Kellogg's top line is also expected to fall year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.56 billion, calling for a decline of 0.6% from the figure reported in the prior-year quarter. K delivered an earnings beat of 11.8%, on average, in the trailing four quarters.

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