Kimberly-Clark (KMB) Reports Q1: Everything You Need To Know Ahead Of Earnings

Anthony Lee /
2024/04/22 3:00 am EDT

Household products company Kimberly-Clark (NYSE:KMB) will be reporting earnings tomorrow before the bell. Here's what to expect.

Last quarter Kimberly-Clark reported revenues of $4.97 billion, flat year on year, missing analyst expectations by 0.5%. It was a weak quarter for the company, with a miss of analysts' operating margin and EPS estimates due to $170 million of currency headwinds from its developing markets experiencing hyperinflation. For organic revenue growth, its Personal Care segment carried the weight, contributing 6% growth compared to 0% and negative 1% for Consumer Tissue and Professional.

Is Kimberly-Clark buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Kimberly-Clark's revenue to decline 2.1% year on year to $5.09 billion, a deceleration on the 2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.64 per share.

Kimberly-Clark Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing six upward revisions over the last thirty days.The company missed Wall St's revenue estimates three times over the last two years.

Looking at Kimberly-Clark's peers in the consumer staples segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. WD-40 delivered top-line growth of 6.8% year on year, missing analyst estimates by 0.8% and Procter & Gamble reported revenues up 0.6% year on year, missing analyst estimates by 1.2%. WD-40 traded down 4% on the results, and P&G traded flat on the results.

Read our full analysis of WD-40's results here and Procter & Gamble's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share price declining 4.6% over the last month. Kimberly-Clark is up 1.5% during the same time, and is heading into the earnings with analyst price target of $131.8, compared to share price of $127.

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