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Is a Beat in Store for Kimberly-Clark (KMB) in Q2 Earnings?

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Kimberly-Clark Corporation (KMB - Free Report) is likely to register bottom-line growth when it reports second-quarter 2023 earnings on Jul 25.

The Zacks Consensus Estimate for the bottom line has increased from $1.38 to $1.41 per share over the past seven days. The projection indicates an increase of 5.2% from the figure reported in the year-ago period quarter. Kimberly-Clark has a trailing four-quarter earnings surprise of 5.1%, on average.

The Zacks Consensus Estimate for revenues is pegged at $5,077 million, suggesting 0.3% growth from the prior-year quarter’s reported figure.

Kimberly-Clark Corporation Price, Consensus and EPS Surprise

Kimberly-Clark Corporation Price, Consensus and EPS Surprise

Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation Quote

Factors to Consider

Kimberly-Clark has been gaining from the implementation of its key strategic growth pillars. These include a focus 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. KMB has been progressing well with these objectives, which have been aiding its portfolio and expanding the global business.

We believe that these factors, along with revenue management actions like pricing, are likely to have aided organic sales in the quarter under review. Our model indicates a 0.7% rise in organic sales for the second quarter.

Kimberly-Clark has been taking robust steps to lower costs. This is highlighted by the 2018 Global Restructuring Program and the Focus on Reducing Costs Everywhere or FORCE Program. The company aggressively cuts costs and enhances supply-chain productivity through the FORCE Program, which has been generating solid cost savings for a while, driving performance. In the first quarter of 2023, the company generated savings of $105 million from the FORCE program.

While input costs are expected to flare up in 2023, management has been focused on undertaking revenue management actions to counter inflation. These upsides bode well for the quarter to be reported.

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 an Earnings ESP of +2.55% and a Zacks Rank #2. 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:

Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +14.60% and a Zacks Rank of 2. BYND is expected to register a top-line decrease when it reports second-quarter 2023 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Beyond Meat’s quarterly revenues is pegged at roughly $111.3 million, calling for a decline of 24.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 81 cents, which suggests an improvement of 47.1% from the figure reported in the year-ago fiscal quarter. BYND has a trailing four-quarter negative earnings surprise of 14.1%, on average.

Coty (COTY - Free Report) currently has an Earnings ESP of +28.57% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.2% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.

Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +0.51% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.4 billion, which implies a rise of 7% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the quarterly EPS is pegged at 79 cents, which indicates a 4% increase from the year-ago period figure. CHD has a trailing four-quarter earnings surprise of 9.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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