Kimberly-Clark Corporation (NYSE:KMB) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading.
The company is expected to report earnings of $1.69/share on revenue of $4.547 billion. The consensus earnings per share (EPS) of $1.69/share is based on a poll of 13 analysts and represents a growth of 5.6% over the same quarter last year when the company reported earnings of $1.60/share.
The revenue forecast of $4.547 billion based on a poll of 10 analysts implies a year-over-year (YoY) decline of -0.5%. Last year the company reported $4.569 billion in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $4,547.31 | $4,569.00 | -0.5% |
| EPS | $1.69 | $1.60 | 5.6% |
In recent years, Kimberly-Clark has increasingly relied on emerging markets to drive sales. Emerging markets today account for about one-third of company sales. Bullish analysts remain optimistic that the company’s growth markets will continue to benefit from rising disposable incomes and favorable demographics. For example, diaper consumption in developing markets is currently at one diaper per day, significantly below the five diapers per day for customers in developed markets. The chart below depicts KMB’s sales and gross profit margin over the last decade.
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.
What are your expectations from Kimberly-Clark for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q3, 2019 | $1.80 | $1.84 | 2.2% | Beat |
| Q2, 2019 | $1.62 | $1.67 | 3.1% | Beat |
| Q1, 2019 | $1.55 | $1.66 | 7.1% | Beat |
| Q4, 2018 | $1.66 | $1.60 | -3.6% | Missed |
| Q3, 2018 | $1.64 | $1.71 | 4.3% | Beat |
| Q2, 2018 | $1.57 | $1.59 | 1.3% | Beat |
| Q1, 2018 | $1.69 | $1.71 | 1.2% | Beat |
| Q4, 2017 | $1.54 | $1.57 | 1.9% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.
After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -3.5%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| 2019-10-22 | $139.19 | $134.29 | -3.5% | Decline |
| 2019-07-23 | $134.26 | $134.65 | 0.3% | Increase |
| 2019-04-22 | $123.55 | $125.62 | 1.7% | Increase |
| 2019-01-23 | $115.23 | $111.44 | -3.3% | Decline |
Fundamentals And Technical Analysis
Kimberly-Clark is currently trading at $144.59/share, up 0.1% for the day. The company is trading at approximately 99.9% of its 52-week high of $144.74/share. The company’s stock price is up 7.7% since the last earnings report and up 2.6% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 77.18 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.
Source: Finbox The current share price implies a price-to-earnings (P/E) multiple of 24.0x and a forward P/E multiple of 20.9x. Kimberly-Clark’s current share price also implies a price-to-book (P/B) multiple of -351.3x. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Fiscal Period | FY2019.Q3 |
| Period End Date | September 30, 2019 |
| Stock Price (Current) | $144.59 |
| P/E Ratio | 24.0x |
| P/E Ratio (Fwd) | 20.9x |
| PEG Ratio | 5.0 |
| Total Debt to Capital (%) | 14.1% |
| Levered Free Cash Flow | $1.583 billion |
| Enterprise Value / EBITDA | 14.8x |
Source: Finbox
Company Profile: Kimberly-Clark Corporation
Kimberly-Clark Corporation is a large-cap stock with a market capitalization of $49.535 billion and a total enterprise value of $57.547 billion. The company operates in the Consumer Staples sector and the Household Products industry.
Kimberly-Clark Corporation, together with its subsidiaries, manufactures and markets personal care, consumer tissue, and professional products worldwide. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional.
The Personal Care segment offers disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise, and other brand names.
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve, and other brand names.
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands. The company sells household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety, and department stores, and other retail outlets, as well as through other distributors and e-commerce; and away-from-home use products directly to manufacturing, lodging, office building, food service, and public facilities, as well as through distributors.
Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.
