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INVESTING IDEAS - page 2

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Marten Transport (MRTN) Q4 Earnings: What Can You Expect?

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Marten Transport, Ltd. (NASDAQGS:MRTN) is scheduled to report Q4 earnings results on January 23, 2020, after markets close for trading. The company is expected to report earnings of $0.28/share on revenue of $214.7 million.

The consensus earnings per share (EPS) of $0.28/share is based on a poll of 3 analysts and represents a decline of -3.4% over the same quarter last year when the company reported earnings of $0.29/share.

The revenue forecast of $214.7 million based on a poll of 3 analysts implies a year-over-year (YoY) growth of 5.3%. Last year the company reported $204 million in revenue for the quarter.

Expected to report EPS decline of -$0.01/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $214.70 $203.96 5.3%
EPS $0.28 $0.29 -3.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters and met expectations 1 quarter.

What are your expectations from Marten Transport for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.28 $0.30 7.1% Beat
Q2, 2019 $0.27 $0.28 3.7% Beat
Q1, 2019 $0.24 $0.25 4.2% Beat
Q4, 2018 $0.27 $0.29 7.4% Beat
Q3, 2018 $0.26 $0.27 4.9% Beat
Q2, 2018 $0.22 $0.25 13.6% Beat
Q1, 2018 $0.18 $0.19 2.7% Beat
Q4, 2017 $0.16 $0.16 0.0% Meet

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 increasing by 1.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $21.18 $21.59 1.9% Increase
2019-07-18 $18.40 $20.23 9.9% Increase
2019-04-16 $18.19 $19.97 9.8% Increase
2019-01-24 $20.10 $19.83 -1.3% Decline

Fundamentals And Technical Analysis

Marten Transport is currently trading at $21.49/share, down -0.7% for the day. The company is trading at approximately 94.3% of its 52-week high of $22.80/share. The company’s stock price is down -0.5% since the last earnings report and down -0.1% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 58.21 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:MRTN Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.4x and a forward P/E multiple of 19.3x. Marten Transport’s current share price also implies a price-to-book (P/B) multiple of 2.0x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $21.49
P/E Ratio 19.4x
P/E Ratio (Fwd) 19.3x
PEG Ratio 5.1
Total Debt to Capital (%) 0.1%
Levered Free Cash Flow -$3.71 million
Enterprise Value / EBITDA 7.1x

Source: Finbox

Company Profile: Marten Transport, Ltd.

Marten Transport, Ltd. is a small-cap stock with a market capitalization of $1.184 billion and a total enterprise value of $1.145 billion. The company operates in the Industrials sector and the Road & Rail industry.

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United States, Canada, and Mexico. It operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage.

The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment.

The Dedicated segment offers transportation solutions for individual customers’ requirements using temperature-controlled trailers, dry vans, and other specialized equipment.

The Intermodal segment transports its customers’ freight utilizing its temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers.

The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for its customers in temperature-controlled trailers and dry vans.

As of December 31, 2018, the company operated a fleet of 2,755 tractors, including 2,709 company-owned tractors and 46 tractors supplied by independent contractors.

Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.

Q4 Earnings Preview for Simmons First National (SFNC)

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Simmons First National Corporation (NASDAQGS:SFNC) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading. The company is expected to report earnings of $0.62/share on revenue of $208 million. The consensus earnings per share (EPS) of $0.62/share is based on a poll of 5 analysts and represents a growth of 1.6% over the same quarter last year when the company reported earnings of $0.61/share.

The revenue forecast of $208 million based on a poll of 5 analysts implies a year-over-year (YoY) growth of 20.7%. Last year the company reported $172.4 million in revenue for the quarter.

Expected to report EPS growth of $0.01/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $208.00 $172.37 20.7%
EPS $0.62 $0.61 1.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 1 quarter.

What are your expectations from Simmons First National for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.64 $0.87 35.9% Beat
Q2, 2019 $0.59 $0.68 14.3% Beat
Q1, 2019 $0.54 $0.53 -1.9% Missed
Q4, 2018 $0.61 $0.61 0.0% Meet
Q3, 2018 $0.58 $0.61 5.2% Beat
Q2, 2018 $0.58 $0.59 1.7% Beat
Q1, 2018 $0.51 $0.57 11.8% Beat
Q4, 2017 $0.45 $0.48 7.8% 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 increasing by 1.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-22 $24.05 $24.33 1.2% Increase
2019-07-23 $23.22 $25.67 10.6% Increase
2019-04-22 $25.47 $24.56 -3.6% Decline
2019-01-22 $26.48 $25.25 -4.6% Decline

Fundamentals And Technical Analysis

Simmons First National is currently trading at $25.59/share, down -2.0% for the day. The company is trading at approximately 91.8% of its 52-week high of $27.87/share. The company’s stock price is up 5.2% since the last earnings report and down -1.7% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 49.66 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:SFNC Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 12.3x and a forward P/E multiple of 12.7x. Simmons First National’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $25.59
P/E Ratio 12.3x
P/E Ratio (Fwd) 12.7x
PEG Ratio 0.8
Total Debt to Capital (%) 35.0%
Levered Free Cash Flow $249.8 million
Market Capitalization $2.976 billion

Source: Finbox

Company Profile: Simmons First National Corporation

Simmons First National Corporation is a mid-cap stock with a market capitalization of $2.976 billion. The company operates in the Financial sector and the Banks industry.

Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses. It offers checking, savings, and time deposits; loan products, including consumer, real estate, commercial, agricultural, equipment, and SBA lending; personal and corporate trust services; credit cards; investment management products; insurance products; and securities and investment services.

The company conducts banking operations through approximately 191 financial centers located in communities throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

Associated Banc-Corp (ASB) Q4 Earnings: What Can You Expect?

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Associated Banc-Corp (NYSE:ASB) is scheduled to report Q4 earnings results on January 23, 2020 after markets close for trading. The company is expected to report earnings of $0.43/share on revenue of $300.3 million. The consensus earnings per share (EPS) of $0.43/share is based on a poll of 9 analysts and represents a decline of -14.0% over the same quarter last year when the company reported earnings of $0.50/share.

The revenue forecast of $300.3 million based on a poll of 5 analysts implies a year-over-year (YoY) decline of -3.7%. Last year the company reported $311.7 million in revenue for the quarter.

Expected to report EPS decline of -$0.07/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $300.30 $311.74 -3.7%
EPS $0.43 $0.50 -14.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 1 quarter.

What are your expectations from Associated Banc-Corp for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.47 $0.50 6.4% Beat
Q2, 2019 $0.50 $0.51 2.0% Beat
Q1, 2019 $0.51 $0.50 -2.0% Missed
Q4, 2018 $0.49 $0.50 2.0% Beat
Q3, 2018 $0.49 $0.49 0.0% Meet
Q2, 2018 $0.47 $0.50 5.3% Beat
Q1, 2018 $0.41 $0.40 -2.4% Missed
Q4, 2017 $0.38 $0.41 7.9% 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 -2.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-24 $20.65 $20.23 -2.0% Decline
2019-07-25 $21.36 $21.54 0.8% Increase
2019-04-25 $22.40 $22.33 -0.3% Decline
2019-01-24 $21.29 $22.03 3.5% Increase

Fundamentals And Technical Analysis

Associated Banc-Corp is currently trading at $20.83/share, down -1.4% for the day. The company is trading at approximately 87.4% of its 52-week high of $23.84/share. The company’s stock price is up 3.0% since the last earnings report and down -0.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 44.99 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:ASB Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 9.6x and a forward P/E multiple of 10.7x. Associated Banc-Corp’s current share price also implies a price-to-book (P/B) multiple of 0.9x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $20.83
P/E Ratio 9.6x
P/E Ratio (Fwd) 10.7x
PEG Ratio -1.0
Total Debt to Capital (%) 52.1%
Levered Free Cash Flow $590.5 million
Market capitalization $3.315 billion

Source: Finbox

Company Profile: Associated Banc-Corp

Associated Banc-Corp is a mid-cap stock with a market capitalization of $3.315 billion. The company operates in the Financial sector and the Banks industry.

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota.

Its Corporate and Commercial Specialty segment offers deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset-based lending, and loan syndications. This segment also provides specialized financial services comprising interest rate risk management, foreign exchange solutions, and commodity hedging.

The company’s Community, Consumer, and Business segment offers checking, credit, debit, and pre-paid cards, online banking and bill pay, and money transfer services; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; savings, money market deposit accounts, IRA accounts, certificates of deposit, and fixed and variable annuities, as well as full-service, discount, and online investment brokerage; investment advisory services; trust and investment management accounts; and insurance and other related products and services. This segment also engages in the administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services.

Its Risk Management and Shared Services segment provides corporate risk management, credit administration, finance, treasury, operations, and technology services.

As of July 03, 2019, the company operated approximately 240 banking locations serving approximately 120 communities. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

M&T Bank (MTB) Q4 2019 Earnings Prep

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M&T Bank Corporation (NYSE:MTB) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading.

The company is expected to report earnings of $3.45/share on revenue of $1.522 billion. The consensus earnings per share (EPS) of $3.45/share is based on a poll of 11 analysts and represents a decline of -7.6% over the same quarter last year when the company reported earnings of $3.73/share.

The revenue forecast of $1.522 billion based on a poll of 9 analysts implies a year-over-year (YoY) decline of -1.1%. Last year the company reported $1.54 billion in revenue for the quarter.

Expected to report EPS decline of -$0.28/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $1,522.00 $1,539.56 -1.1%
EPS $3.45 $3.73 -7.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from M&T Bank for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $3.58 $3.53 -1.5% Missed
Q2, 2019 $3.69 $3.61 -2.2% Missed
Q1, 2019 $3.28 $3.35 2.1% Beat
Q4, 2018 $3.51 $3.73 6.5% Beat
Q3, 2018 $3.34 $3.55 6.4% Beat
Q2, 2018 $3.17 $3.25 2.4% Beat
Q1, 2018 $2.78 $2.84 2.2% Beat
Q4, 2017 $2.41 $2.66 10.4% 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 -4.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $158.93 $152.23 -4.2% Decline
2019-07-18 $170.44 $162.87 -4.4% Decline
2019-04-15 $167.76 $168.28 0.3% Increase
2019-01-17 $154.42 $165.59 7.2% Increase

Fundamentals And Technical Analysis

M&T Bank is currently trading at $160.97/share, down -1.3% for the day. The company is trading at approximately 91.4% of its 52-week high of $176.11/share. The company’s stock price is up 5.7% since the last earnings report and down -3.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 40.23 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:MTB Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.9x and a forward P/E multiple of 11.5x. M&T Bank’s current share price also implies a price-to-book (P/B) multiple of 1.5x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $160.97
P/E Ratio 10.9x
P/E Ratio (Fwd) 11.5x
PEG Ratio -1.3
Total Debt to Capital (%) 36.4%
Levered Free Cash Flow $1.619 billion
Market Capitalization $21.516 billion

Source: Finbox

Company Profile: M&T Bank Corporation

M&T Bank Corporation is a large-cap stock with a market capitalization of $21.516 billion. The company operates in the Financial sector and the Banks industry.

M&T Bank Corporation operates as the holding company for Manufacturers and Traders Trust Company; and Wilmington Trust, National Association that provide banking services.

The company’s Business Banking segment offers deposits, business loans and leases, and credit cards; and cash management, payroll, and letters of credit services to small businesses and professionals.

Its Commercial Banking segment provides credit and banking services for middle-market and large commercial customers.

The company’s Commercial Real Estate segment offers multifamily residential and commercial real estate credit, and deposit services.

Its Discretionary Portfolio segment provides deposits; securities, residential real estate loans, and other assets; and short and long term borrowed funds, as well as foreign exchange services.

The company’s Residential Mortgage Banking segment offers residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities.

Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational finance loans, home equity loans and lines of credit, and credit cards; demand, savings; and time accounts; mutual funds and annuities; and other services.

The company also provides trust and wealth management; fiduciary and custodial; investment management; and insurance agency services. It offers its services through banking offices, business banking centers, telephone and Internet banking, mobile banking, and automated teller machines.

As of December 31, 2018, the company had 750 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, and the District of Columbia; a full-service commercial banking office in Ontario, and Canada; and an office in George Town, Cayman Islands.

M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.

Q4 Earnings Preview for KeyCorp (KEY)

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KeyCorp (NYSE:KEY) is scheduled to report Q4 earnings results on January 23, 2020, before markets open for trading. The company is expected to report earnings of $0.48/share on revenue of $1.64 billion. The consensus earnings per share (EPS) of $0.48/share is based on a poll of 15 analysts and represents a growth of 0.8% over the same quarter last year when the company reported earnings of $0.48/share.

The revenue forecast of $1.64 billion based on a poll of 9 analysts implies a year-over-year (YoY) decline of -0.8%. Last year the company reported $1.653 billion in revenue for the quarter.

Expected to report EPS growth of $0/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $1,639.55 $1,653.00 -0.8%
EPS $0.48 $0.48 0.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 3 quarters.

What are your expectations from KeyCorp for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.46 $0.48 3.9% Beat
Q2, 2019 $0.44 $0.44 0.0% Meet
Q1, 2019 $0.41 $0.40 -2.4% Missed
Q4, 2018 $0.47 $0.48 2.1% Beat
Q3, 2018 $0.44 $0.45 1.8% Beat
Q2, 2018 $0.42 $0.43 4.3% Beat
Q1, 2018 $0.38 $0.38 0.0% Meet
Q4, 2017 $0.36 $0.36 0.0% Meet

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 did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $17.69 $17.77 0.5% Increase
2019-07-23 $17.37 $18.44 6.2% Increase
2019-04-18 $17.17 $16.79 -2.2% Decline
2019-01-17 $16.75 $16.85 0.6% Increase

Fundamentals And Technical Analysis

KeyCorp is currently trading at $19.50/share, down -0.5% for the day. The company is trading at approximately 95.0% of its 52-week high of $20.53/share. The company’s stock price is up 9.7% since the last earnings report and flat over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 50.75 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:KEY Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.2x and a forward P/E multiple of 10.7x.

KeyCorp’s current share price also implies a price-to-book (P/B) multiple of 1.3x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $19.50
P/E Ratio 11.2x
P/E Ratio (Fwd) 10.7x
PEG Ratio -25.1
Total Debt to Capital (%) 43.7%
Levered Free Cash Flow $3.527 billion
Market Capitalization $19.295 billion

Source: Finbox

Company Profile: KeyCorp

KeyCorp is a large-cap stock with a market capitalization of $19.295 billion. The company operates in the Financial sector and the Banks industry.

KeyCorp operates as the holding company for KeyBank National Association that provides various retail and commercial banking services in the United States.

The company’s Key Community Bank segment offers various deposit and investment products, personal finance services, residential mortgages, home equity loans, credit cards, and installment loans. It also purchases retail auto-sales contracts through a network of auto dealership; offers financial, estate and retirement planning, asset management, and trust services, as well as portfolio management, life insurance, charitable giving, and related services for high-net-worth clients. In addition, this segment provides deposits, investment and credit products, and business advisory services to small businesses; and commercial lending, cash management, equipment leasing, and investment products, as well as employee benefit programs, succession planning, capital market access, derivatives, and foreign exchange services to mid-sized businesses.

Its Key Corporate Bank segment offers a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans for middle-market clients comprising consumer, energy, healthcare, industrial, public, real estate, and technology sectors. The company also offers securities underwriting, investment banking, and brokerage services.

As of December 31, 2018, it offered its products and services through 1,159 retail banking branches and 1,505 automated teller machines in 15 states, as well as additional offices, online and mobile banking capabilities, and a telephone banking call center.

KeyCorp was founded in 1849 and is headquartered in Cleveland, Ohio.

Kimberly-Clark Q4 Earnings: Can KMB Hit Its $1.69 EPS Target?

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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.

Expected to report EPS growth of $0.09/share for Q4, 2019
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.


NYSE:KMB Fundamentals Chart
Source: Finbox

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!

Analyst Expected vs. Reported EPS
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%.

Stock Price Performance After Earnings
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.

NYSE:KMB Stock Price Chart 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:

Data as of January 21, 2020
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.

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