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Kimberly-Clark (KMB) Q1 Earnings Coming Up: Is a Beat Likely?
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Kimberly-Clark Corporation (KMB - Free Report) is likely to deliver a top-and-bottom-line decline when it reports first-quarter 2023 earnings on Apr 23. The Zacks Consensus Estimate for revenues is pegged at $5.1 billion, which suggests a drop of 2.3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has increased by a penny in the past 30 days to $1.60 per share. This indicates a decline of 4.2% from the year-ago quarter’s reported figure. KMB has a trailing four-quarter earnings surprise of 11.2%, on average.
Kimberly-Clark Corporation Price, Consensus and EPS Surprise
Kimberly-Clark has been battling an inflationary environment for a while now. Increased other manufacturing costs remained a drag on the gross margin in the last reported quarter, although offset by net revenue realization, cost savings and lower input costs. On its last earnings call, the company stated that it expects lower raw material costs to be countered by elevated distribution and labor costs.
Inflationary economies in some markets have also posed challenges for the company’s product volumes. This is because inflation causes companies to resort to necessary price increases, which affects consumer affordability and demand. An inflationary landscape in some of the developing countries where Kimberly-Clark operates remains a hurdle. These factors might have acted as deterrents in the quarter under review. Our model suggests a 0.3% dip in volumes for the first quarter.
That being said, Kimberly-Clark's focus on innovation, consumer-centric approach and strategic investments in product development have been leading to successful launches and market expansion. The company’s focus on growth opportunities, including leveraging its brand investments, enhancing its product mix and driving volume improvement through consumer-focused strategies, also bodes well. We expect organic sales growth of 2.4% in the quarter under review.
Additionally, KMB has been benefiting from the Focus on Reducing Costs Everywhere or FORCE Program. Kimberly-Clark aggressively cuts costs and enhances supply-chain productivity through this program.
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 odds of an earnings beat, which is the case here.
Kimberly-Clark has an Earnings ESP of +0.36% and carries a Zacks Rank #3. 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 worth considering as our model shows that these also have the correct combination to beat on earnings this time:
The Hershey Company (HSY - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3. The company is likely to witness top-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.12 billion, which suggests a rise of 4.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly EPS has risen by a cent in the past seven days to $2.73, which calls for a decrease of 7.8% from the year-ago quarter’s level. HSY has a trailing four-quarter earnings surprise of 6.5%, on average.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.53% and a Zacks Rank #3. The company is likely to register a top-and-bottom-line decline when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at $4.73 billion, which calls for a drop of 0.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Altria’s bottom line stands at $1.15 per share, which indicates a decrease of 2.5% from the year-ago quarter. MO delivered a positive earnings surprise of 0.9% in the last reported quarter.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is likely to register top-line and bottom-line increases when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.49 billion, which implies growth of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings of 86 cents suggests a rise of 1.2% from the year-ago quarter’s levels. CHD has a trailing four-quarter earnings surprise of 9.7%, on average.
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Kimberly-Clark (KMB) Q1 Earnings Coming Up: Is a Beat Likely?
Kimberly-Clark Corporation (KMB - Free Report) is likely to deliver a top-and-bottom-line decline when it reports first-quarter 2023 earnings on Apr 23. The Zacks Consensus Estimate for revenues is pegged at $5.1 billion, which suggests a drop of 2.3% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has increased by a penny in the past 30 days to $1.60 per share. This indicates a decline of 4.2% from the year-ago quarter’s reported figure. KMB has a trailing four-quarter earnings surprise of 11.2%, on average.
Kimberly-Clark Corporation Price, Consensus and EPS Surprise
Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation Quote
Factors to Note
Kimberly-Clark has been battling an inflationary environment for a while now. Increased other manufacturing costs remained a drag on the gross margin in the last reported quarter, although offset by net revenue realization, cost savings and lower input costs. On its last earnings call, the company stated that it expects lower raw material costs to be countered by elevated distribution and labor costs.
Inflationary economies in some markets have also posed challenges for the company’s product volumes. This is because inflation causes companies to resort to necessary price increases, which affects consumer affordability and demand. An inflationary landscape in some of the developing countries where Kimberly-Clark operates remains a hurdle. These factors might have acted as deterrents in the quarter under review. Our model suggests a 0.3% dip in volumes for the first quarter.
That being said, Kimberly-Clark's focus on innovation, consumer-centric approach and strategic investments in product development have been leading to successful launches and market expansion. The company’s focus on growth opportunities, including leveraging its brand investments, enhancing its product mix and driving volume improvement through consumer-focused strategies, also bodes well. We expect organic sales growth of 2.4% in the quarter under review.
Additionally, KMB has been benefiting from the Focus on Reducing Costs Everywhere or FORCE Program. Kimberly-Clark aggressively cuts costs and enhances supply-chain productivity through this program.
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 odds of an earnings beat, which is the case here.
Kimberly-Clark has an Earnings ESP of +0.36% and carries a Zacks Rank #3. 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 worth considering as our model shows that these also have the correct combination to beat on earnings this time:
The Hershey Company (HSY - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #3. The company is likely to witness top-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.12 billion, which suggests a rise of 4.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly EPS has risen by a cent in the past seven days to $2.73, which calls for a decrease of 7.8% from the year-ago quarter’s level. HSY has a trailing four-quarter earnings surprise of 6.5%, on average.
Altria Group (MO - Free Report) currently has an Earnings ESP of +1.53% and a Zacks Rank #3. The company is likely to register a top-and-bottom-line decline when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for Altria’s quarterly revenues is pegged at $4.73 billion, which calls for a drop of 0.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Altria’s bottom line stands at $1.15 per share, which indicates a decrease of 2.5% from the year-ago quarter. MO delivered a positive earnings surprise of 0.9% in the last reported quarter.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is likely to register top-line and bottom-line increases when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.49 billion, which implies growth of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings of 86 cents suggests a rise of 1.2% from the year-ago quarter’s levels. CHD has a trailing four-quarter earnings surprise of 9.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.