Household products company Kimberly-Clark (NYSE:KMB) will be reporting earnings this Friday before market hours. Here’s what to expect.
Kimberly-Clark missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $4.84 billion, down 6% year on year. It was a slower quarter for the company, with a miss of analysts’ organic revenue estimates and adjusted operating income in line with analysts’ estimates.
Is Kimberly-Clark a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kimberly-Clark’s revenue to decline 7.3% year on year to $4.66 billion, a further deceleration from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.67 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 9 analysts). Kimberly-Clark has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Kimberly-Clark’s peers in the household products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Procter & Gamble delivered year-on-year revenue growth of 1.7%, meeting analysts’ expectations, and WD-40 reported revenues up 1.2%, falling short of estimates by 2.3%. Procter & Gamble traded down 2.8% following the results while WD-40’s stock price was unchanged.
Read our full analysis of Procter & Gamble’s results here and WD-40’s results here.
Investors in the household products segment have had steady hands going into earnings, with share prices flat over the last month. Kimberly-Clark is down 5.5% during the same time and is heading into earnings with an average analyst price target of $141.33 (compared to the current share price of $124.33).
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