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Household products company Kimberly-Clark (NYSE:KMB) will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Kimberly-Clark missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $5.03 billion, down 2% year on year. It was a mixed quarter for the company: It was good to see Kimberly-Clark beat analysts' EPS expectations. On the other hand, both its organic revenue and reported revenue unfortunately missed analysts' expectations.
Is Kimberly-Clark a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kimberly-Clark’s revenue to decline 1.6% year on year to $5.05 billion, a reversal from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.71 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 7 downward revisions over the last 30 days (we track 10 analysts). Kimberly-Clark has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Kimberly-Clark’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WD-40 delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 4.6%, and Procter & Gamble reported flat revenue, falling short of estimates by 1.1%. WD-40 traded down 5.1% following the results.
Read our full analysis of WD-40’s results here and Procter & Gamble’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Kimberly-Clark is up 3% during the same time and is heading into earnings with an average analyst price target of $151.12 (compared to the current share price of $145.41).
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