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Things to Consider Before Kimberly-Clark's (KMB) Q4 Earnings

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Kimberly-Clark Corporation (KMB - Free Report) is likely to register top-line growth when it reports fourth-quarter 2023 earnings on Jan 24. The Zacks Consensus Estimate for quarterly revenues is pegged at almost $5 billion, suggesting 0.5% growth from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 revenues is pegged at $20.5 billion, projecting growth of 1.4% from the year-ago period’s reported figure.

However, the company’s fiscal fourth-quarter bottom line is likely to decline year over year. The Zacks Consensus Estimate for quarterly earnings is unchanged at $1.53 per share in the past 30 days. The projection indicates a drop of 0.7% from the figure reported in the year-ago quarter. The consensus mark for fiscal 2023 earnings is pegged at $6.57 per share, suggesting a rise of 16.7% growth from the prior-year period’s level.

The manufacturer and marketer of a wide range of consumer products has a trailing four-quarter earnings surprise of 12.1%, on average.

Kimberly-Clark Corporation Price and EPS Surprise

 

Kimberly-Clark Corporation Price and EPS Surprise

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

 

Things To Consider

Kimberly-Clark is benefiting from a focus on revenue growth management, which is driving top-line momentum. Effective implementation of pricing strategies and ongoing productivity initiatives have been protecting margins. The focus on customer-friendly innovation is worth noting. The continuation of such aspects bodes well for the quarter under review.

For 2023, management expects net sales growth of 1-2% and organic sales increase of 4-5% year over year. The company anticipates an adjusted operating margin expansion of 170 basis points. Kimberly-Clark envisions a 2023 adjusted earnings per share (EPS) increase of 15-17% from 2022 levels. We expect 2023 organic sales to rise 5%, while adjusted operating margin is likely to expand 170 bps to 14.7%.

Kimberly-Clark has been battling an inflationary environment for a while. KMB is also vulnerable to unfavorable currency fluctuations. In its last earnings call, management highlighted that it expects operating profit to be affected by input costs to the tune of $50 million while other manufacturing costs are likely to be a headwind of $250 million during 2023. Unfavorable foreign currency exchange rates are likely to have hurt net sales by 3% in 2023.

What the Zacks Model Unveils

Our proven model predicts 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 carries a Zacks Rank #3 and has an Earnings ESP of +0.84%.

More Stocks With Favorable Combination

Here are three more companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.

Church & Dwight Co. (CHD - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank of 2. The company is slated to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% 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 Church & Dwight’s quarterly earnings of 64 cents per share suggests an increase of 3.2% from the year-ago quarter’s levels. CHD delivered an earnings surprise of 10.1%, on average, in the trailing four quarters.

Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +3.43% and a Zacks Rank #3. The company is likely to register top-and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.2 billion, indicating a rise of 6.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 77 cents suggests an increase of 5.5% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.

Philip Morris (PM - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3. The company is likely to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $8.9 billion, which suggests a rise of 9.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Philip Morris’ quarterly earnings of $1.44 per share suggests an increase of 3.6% from the year-ago quarter’s levels. PM has a trailing four-quarter earnings surprise of 5.8%, on average.

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

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