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Kimberly-Clark (KMB) Gears Up for Q4 Earnings: Things to Note
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Kimberly-Clark Corporation (KMB - Free Report) is likely to register a top-line decline when it reports fourth-quarter 2022 earnings on Jan 25. The Zacks Consensus Estimate for revenues is pegged at $4,959 million, suggesting a decrease of 1.4% from the prior-year quarter’s reported figure.
Nevertheless, the bottom line is likely to register growth. The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past 30 days at $1.50 per share. The projection indicates growth of 15.4% from the year-ago quarter’s reported figure.
Kimberly-Clark has a trailing four-quarter earnings surprise of 1.3%, on average. However, this consumer products company reported a negative earnings surprise of 5.4% in the last reported quarter.
KimberlyClark Corporation Price, Consensus and EPS Surprise
Due to its exposure to international markets, Kimberly-Clark remains vulnerable to currency fluctuations. Unfavorable foreign currency exchange rates are likely to have hurt 2022 net sales 3-4%, which raises concerns about the quarter to-be-reported as well.
The company has been battling high input costs for the past few quarters. The company’s third-quarter operating profit was affected by a rise in input costs to the tune of $360 million. Reduced volumes, escalated marketing, research and general expenses and unfavorable foreign currency also affected the operating profit. The company expects input cost inflation of $1.4-$1.6 billion for the full year. That said, management has been focused on undertaking relevant pricing actions to counter inflation and efficiently manage costs.
Kimberly-Clark’s Focus on Reducing Costs Everywhere or FORCE Program has also worked well. During the third quarter of 2022, the company generated savings of $80 million from the FORCE program, bringing year-to-date program savings to $175 million. Management is maintaining its cost savings from the FORCE program in the range of $300-$350 million in 2022.
Apart from this, Kimberly-Clark’s focus on its three key strategic growth pillars bodes well. These include its focus on improving its core business in developed markets, speeding up growth of the Personal Care segment in developing and emerging markets and enhance digital and e-commerce capacities. The company expects to meet these objectives through product development across different categories and leveraging capabilities in marketing and sales.
What the Zacks Model Unveils
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 chances of an earnings beat, which is the case here.
Kimberly-Clark has a Zacks Rank #3 and an Earnings ESP of +1.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.94% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +6.52% and a Zacks Rank of 3. K is expected to register a top and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
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Kimberly-Clark (KMB) Gears Up for Q4 Earnings: Things to Note
Kimberly-Clark Corporation (KMB - Free Report) is likely to register a top-line decline when it reports fourth-quarter 2022 earnings on Jan 25. The Zacks Consensus Estimate for revenues is pegged at $4,959 million, suggesting a decrease of 1.4% from the prior-year quarter’s reported figure.
Nevertheless, the bottom line is likely to register growth. The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past 30 days at $1.50 per share. The projection indicates growth of 15.4% from the year-ago quarter’s reported figure.
Kimberly-Clark has a trailing four-quarter earnings surprise of 1.3%, on average. However, this consumer products company reported a negative earnings surprise of 5.4% in the last reported quarter.
KimberlyClark Corporation Price, Consensus and EPS Surprise
KimberlyClark Corporation price-consensus-eps-surprise-chart | KimberlyClark Corporation Quote
Factors to Consider
Due to its exposure to international markets, Kimberly-Clark remains vulnerable to currency fluctuations. Unfavorable foreign currency exchange rates are likely to have hurt 2022 net sales 3-4%, which raises concerns about the quarter to-be-reported as well.
The company has been battling high input costs for the past few quarters. The company’s third-quarter operating profit was affected by a rise in input costs to the tune of $360 million. Reduced volumes, escalated marketing, research and general expenses and unfavorable foreign currency also affected the operating profit. The company expects input cost inflation of $1.4-$1.6 billion for the full year. That said, management has been focused on undertaking relevant pricing actions to counter inflation and efficiently manage costs.
Kimberly-Clark’s Focus on Reducing Costs Everywhere or FORCE Program has also worked well. During the third quarter of 2022, the company generated savings of $80 million from the FORCE program, bringing year-to-date program savings to $175 million. Management is maintaining its cost savings from the FORCE program in the range of $300-$350 million in 2022.
Apart from this, Kimberly-Clark’s focus on its three key strategic growth pillars bodes well. These include its focus on improving its core business in developed markets, speeding up growth of the Personal Care segment in developing and emerging markets and enhance digital and e-commerce capacities. The company expects to meet these objectives through product development across different categories and leveraging capabilities in marketing and sales.
What the Zacks Model Unveils
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 chances of an earnings beat, which is the case here.
Kimberly-Clark has a Zacks Rank #3 and an Earnings ESP of +1.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +2.64% and a Zacks Rank of 2. MDLZ is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.3 billion, calling for growth of 8.8% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 71 cents is in line with the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 6.4%, on average.
The Kraft Heinz Company (KHC - Free Report) currently has an Earnings ESP of +2.94% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 78 cents suggests a decrease of 1.3% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.6% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +6.52% and a Zacks Rank of 3. K is expected to register a top and bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.