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Factors to Note Ahead of Kimberly-Clark's (KMB) Q1 Earnings
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Kimberly-Clark Corporation (KMB - Free Report) is likely to register a top-and-bottom-line decline when it reports first-quarter 2023 earnings on Apr 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $5,066 million, suggesting a decrease of 0.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has risen by a penny in the past seven days to $1.32 per share. However, the projection indicates a decline of 2.2% from the year-ago quarter’s reported figure.
Kimberly-Clark has a trailing four-quarter earnings surprise of 1.4%, on average. This consumer product company reported an earnings surprise of around 2% in the last reported quarter.
We expect first-quarter revenues to dip 1.4% to $5,022.2 million and adjusted earnings per share (EPS) to decline 3.4% to $1.30.
Factors to Consider
Kimberly-Clark has been battling high input costs for the past few quarters. In the fourth quarter of 2022, the company’s operating profit was affected by a rise in input costs to the tune of $245 million. Reduced volumes, escalated marketing, research and general expenses and unfavorable foreign currency also affected the operating profit.
KMB expects input cost inflation in the band of $200-$300 million for 2023. Marketing, research and general spending are anticipated to increase due to continued business investments, including elevated advertising spending, along with general overall inflation. Kimberly-Clark remains vulnerable to currency fluctuations. Unfavorable foreign currency exchange rates are likely to hurt 2023 net sales by around 2%. All these factors raise concerns for the quarter to be reported as well.
Kimberly-Clark Corporation Price, Consensus and EPS Surprise
However, Kimberly-Clark’s Focus on Reducing Costs Everywhere or FORCE Program has been working well. In the fourth quarter of 2022, the company generated savings of $115 million from the FORCE program. For 2023, management expects cost savings from the FORCE program to be in tandem with the year-ago period. While input costs are expected to flare up in 2023, management is focused on undertaking revenue management actions to counter inflation.
Kimberly-Clark’s focus on its three key strategic growth pillars bodes well. These include its emphasis on improving its core business in developed markets, speeding up the growth of the Personal Care segment in developing and emerging markets and enhancing digital and e-commerce capacities.
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 #2 and an Earnings ESP of +3.25%. 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 also have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $8.4 billion, calling for growth of 8.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 80 cents suggests a decline of 4.8% from the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 7.5%, on average.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.93% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at roughly $5 billion, which suggests a rise of 3.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for MO’s quarterly EPS of $1.19 suggests a 6.3% increase from the year-ago quarter. Altria has a trailing four-quarter earnings surprise of 0.3%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The company is likely to register a top-and-bottom-line increase when it reports third-quarter fiscal 2023 results. The consensus mark for SYY’s quarterly revenues is pegged at $18.7 million, which suggests a jump of 10.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Sysco’s bottom line has deteriorated by a penny to 92 cents per share in the past 30 days. The consensus estimate indicates a 29.6% improvement from the year-ago quarter’s figure.
Image: Bigstock
Factors to Note Ahead of Kimberly-Clark's (KMB) Q1 Earnings
Kimberly-Clark Corporation (KMB - Free Report) is likely to register a top-and-bottom-line decline when it reports first-quarter 2023 earnings on Apr 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $5,066 million, suggesting a decrease of 0.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has risen by a penny in the past seven days to $1.32 per share. However, the projection indicates a decline of 2.2% from the year-ago quarter’s reported figure.
Kimberly-Clark has a trailing four-quarter earnings surprise of 1.4%, on average. This consumer product company reported an earnings surprise of around 2% in the last reported quarter.
We expect first-quarter revenues to dip 1.4% to $5,022.2 million and adjusted earnings per share (EPS) to decline 3.4% to $1.30.
Factors to Consider
Kimberly-Clark has been battling high input costs for the past few quarters. In the fourth quarter of 2022, the company’s operating profit was affected by a rise in input costs to the tune of $245 million. Reduced volumes, escalated marketing, research and general expenses and unfavorable foreign currency also affected the operating profit.
KMB expects input cost inflation in the band of $200-$300 million for 2023. Marketing, research and general spending are anticipated to increase due to continued business investments, including elevated advertising spending, along with general overall inflation. Kimberly-Clark remains vulnerable to currency fluctuations. Unfavorable foreign currency exchange rates are likely to hurt 2023 net sales by around 2%. All these factors raise concerns for the quarter to be reported as well.
Kimberly-Clark Corporation Price, Consensus and EPS Surprise
Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation Quote
However, Kimberly-Clark’s Focus on Reducing Costs Everywhere or FORCE Program has been working well. In the fourth quarter of 2022, the company generated savings of $115 million from the FORCE program. For 2023, management expects cost savings from the FORCE program to be in tandem with the year-ago period. While input costs are expected to flare up in 2023, management is focused on undertaking revenue management actions to counter inflation.
Kimberly-Clark’s focus on its three key strategic growth pillars bodes well. These include its emphasis on improving its core business in developed markets, speeding up the growth of the Personal Care segment in developing and emerging markets and enhancing digital and e-commerce capacities.
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 #2 and an Earnings ESP of +3.25%. 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 also have the right combination of elements to post an earnings beat:
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +1.06% and a Zacks Rank of 3. MDLZ is expected to register a top-line improvement when it reports first-quarter 2023 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 $8.4 billion, calling for growth of 8.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 80 cents suggests a decline of 4.8% from the figure reported in the year-ago fiscal quarter. MDLZ has a trailing four-quarter earnings surprise of 7.5%, on average.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.93% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at roughly $5 billion, which suggests a rise of 3.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for MO’s quarterly EPS of $1.19 suggests a 6.3% increase from the year-ago quarter. Altria has a trailing four-quarter earnings surprise of 0.3%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The company is likely to register a top-and-bottom-line increase when it reports third-quarter fiscal 2023 results. The consensus mark for SYY’s quarterly revenues is pegged at $18.7 million, which suggests a jump of 10.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Sysco’s bottom line has deteriorated by a penny to 92 cents per share in the past 30 days. The consensus estimate indicates a 29.6% improvement from the year-ago quarter’s figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.