Things to Note Ahead of Kimberly-Clark's (KMB) Q1 Earnings
Kimberly-Clark Corporation KMB is slated to report first-quarter 2020 results on Apr 22. This consumer products company delivered a positive earnings surprise of 0.59% in the last reported quarter. Further, it has a trailing four-quarter positive earnings surprise of 3.11%, on average.
The Zacks Consensus Estimate for first-quarter earnings has moved up by 5.3% to $1.99 in the past 7 days. This figure suggests an increase of 19.9% from the year-ago quarter’s reported figure. Moreover, the consensus mark for revenues stands is pegged at $4,741 million that indicates growth of 2.3% from the figure reported in the year-ago period.
Kimberly-Clark Corporation Price and EPS Surprise
Kimberly-Clark Corporation price-eps-surprise | Kimberly-Clark Corporation Quote
Key Factors to Note
Kimberly-Clark has been witnessing a spike in demand due to the panic-buying trends amid the coronavirus outbreak. In this regard, the company has been undertaking a number of measures to increase production of essential commodities. Also, the company has been reallocating inventory to provide consumers with greater access to its products amid the crisis.
Apart from this, the company has been progressing well with its three key strategic growth pillars. These include improving its core business in the developed markets, accelerating growth in the Personal Care segment in developing and emerging markets as well as enhancing digital and e-commerce capacities. These initiatives have been aiding Kimberly-Clark’s portfolio and expanding the global business.
However, Kimberly-Clark’s K-C Professional segment has been grappling with dismal sales for a while now. Segment sales have been bearing the brunt of adverse currency rates and several business exits as part of the company’s 2018 Global Restructuring Plan. Also, rise in marketing, research and general expenses along with unfavorable foreign currency translations has been a concern. Nonetheless, Kimberly-Clark’s focus on lowering costs through its 2018 Global Restructuring Program as well as the Focus on Reducing Costs Everywhere or FORCE Program bodes well.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kimberly-Clark this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kimberly-Clark carries a Zacks Rank #3 and Earnings ESP of +0.53%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
The Clorox Company CLX currently has an Earnings ESP of +2.56% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Campbell Soup Company CPB has an Earnings ESP of +27.50% and a Zacks Rank #2.
Hershey Company HSY currently has an Earnings ESP of +1.98% and a Zacks Rank of 3.
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