Kimberly-Clark Readies for Q4 Earnings amid Mixed Market Performance
Analysts Predict Slight Dip in Profit Ahead of Earnings Report
Kimberly-Clark Corporation (KMB), headquartered in Dallas, Texas, stands as a leading player in the health and hygiene sector. The company manufactures personal care and consumer tissue products, reaching both domestic and international customers, with a market capitalization of $43.7 billion. Its Q4 earnings report is anticipated on Wednesday, Jan. 22.
Quarterly and Annual Projections Point to Growth
As the Q4 earnings date approaches, analysts predict that Kimberly-Clark will report a profit of $1.49 per share. This marks a slight decline of 1.3% from the $1.51 per share reported during the same quarter last year. Remarkably, the company has managed to exceed Wall Street’s adjusted EPS targets in three of the last four quarters, with the last quarter’s adjusted EPS exceeding estimates by 8.3%.
Looking Ahead: A Positive Outlook for Future Earnings
For fiscal 2024, forecasts estimate that Kimberly-Clark’s adjusted EPS will reach $7.31, reflecting an 11.3% increase from $6.57 in fiscal 2023. Furthermore, analysts anticipate a 3.6% growth in adjusted EPS for fiscal 2025, projecting it at $7.57.
Stock Performance vs. Market Trends
Over the past year, KMB shares have appreciated by 6.8%, trailing behind the S&P 500 Index’s gain of 23.7%, as well as the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.6% returns within the same period.
Challenges Impacting Market Momentum
Several challenges have affected Kimberly-Clark’s market momentum over the last year. A notable shift in consumer behavior towards more affordable products, along with unfavorable currency exchange rates, has played a role. Additionally, the planned divestiture of its K-C Professional Personal Protective Equipment business in July 2024 has led to a downward adjustment of the company’s full-year sales forecast.
Market Reactions to Recent Earnings Announcements
On Oct. 22, KMB shares dropped by 4.5% following the release of its Q3 earnings report. While the adjusted profit of $1.83 per share exceeded analyst expectations, total revenue of $4.95 billion did not meet market predictions.
Analyst Ratings Provide a Mixed Perspective
Currently, analysts view KMB stock with a reasonably positive outlook, assigning an overall rating of “Moderate Buy.” Among the 19 analysts covering the stock, six recommend “Strong Buy,” one suggests “Moderate Buy,” ten propose “Hold,” and two advocate for a “Strong Sell” rating.
With a mean price target of $149, analysts see a potential upside of 14.1% from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
