Dallas, Texas-based Kimberly-Clark Corporation (KMB) is a global health and hygiene company. It manufactures personal care and consumer tissue products in the U.S. and internationally. With a market cap of $47.7 billion, Kimberly-Clark operates through the Personal Care, Consumer Tissue, and K-C Professional segments. It is expected to release its Q3 earnings on Tuesday, Oct. 22.
Ahead of the event, analysts expect Kimberly-Clark to report a profit of $1.68 per share, down 3.5% from $1.74 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections thrice over the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter grew by 18.8% year-over-year to $1.96, exceeding the consensus estimates by 16.7%.
For fiscal 2024, analysts expect Kimberly-Clark to report an adjusted EPS of $7.25, up 10.4% from $6.57 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 3.6% year-over-year to $7.51.
KMB has gained 15.3% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 19.5% gains but outpacing the Consumer Staples Select Sector SPDR Fund’s (XLP) 12.7% returns during the same time frame.
Kimberly-Clark’s shares took a significant hit, plunging 5.7% after the release of its Q2 earnings on Jul. 23. The company’s revenue fell 2.1% year-over-year to $5 billion, missing analysts’ estimates.
Despite the top-line decline, Kimberly-Clark reported a massive surge in profitability. Net income attributable to shareholders skyrocketed by 433.3% year-over-year to $544 million. However, this increase was primarily due to a base effect, as the company had incurred a $658 million impairment expense related to Softex Indonesia and Thinx in the year-ago quarter, severely impacting net income in Q2 2023. Nevertheless, its EPS adjusted for non-recurring items also showcased a robust improvement, growing 18.8% annually.
Following the initial drop, KMB stock rebounded by 3.4% in the subsequent trading session and maintained positive momentum over the next two sessions.
The consensus opinion on KMB stock is moderately bullish, with an overall “Moderate Buy.” Out of the 19 analysts covering the stock, six recommend “Strong Buy,” one advises “ Moderate Buy,” 10 suggest “Hold,” and two advocate a “Strong Sell” rating.
The mean price target of $148.39 suggests a potential upside of 6% from current price levels.
On the date of publication, Aditya Sarawgi 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.
