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Here's How Kimberly-Clark (KMB) Looks Ahead of Q2 Earnings

Kimberly-Clark Corporation KMB is slated to report second-quarter 2020 results on Jul 23. This consumer products company has a trailing four-quarter earnings surprise of 2.7%, on average.

The Zacks Consensus Estimate for second-quarter earnings has moved up by a couple of cents to $1.82 in the past 7 days. The estimate suggests an increase of almost 9% from the year-ago quarter’s reported figure. Moreover, the consensus mark for revenues is pegged at $4,489 million that indicates a decline of 2.3% from the figure reported in the year-ago quarter.

KimberlyClark Corporation Price and EPS Surprise

KimberlyClark Corporation Price and EPS Surprise

KimberlyClark Corporation price-eps-surprise | KimberlyClark Corporation Quote


Key Factors to Note

Kimberly-Clark has been witnessing a spike in demand due to consumer stockpiling trends amid the coronavirus outbreak. In this regard, the company is undertaking measures to increase production of essential commodities. Also, Kimberly-Clark has been reallocating inventory to provide consumers with greater access to its products amid the crisis.

Apart from this, the company is progressing with its K-C Strategy 2022. The program concentrates on various initiatives like strengthening its brand portfolio, undertaking efficient capital allocation and executing robust cost discipline. Moreover, Kimberly-Clark’s focus on three key strategic growth pillars bodes well. These include improving its core business in the developed markets, accelerating growth in the Personal Care segment as well as enhancing digital capacities.

However, Kimberly-Clark’s K-C Professional segment has been grappling with dismal sales for a while now. In its last earnings call, management stated that during the second quarter it expects soft volumes in the segment owing to COVID-19. 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 has been yielding positive results.

What the Zacks Model Unveils

Our proven modeldoesn’t conclusively predictan 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 an Earnings ESP of -0.07%.

Stocks With Favorable Combination

Here are some other companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Nu Skin Enterprises NUS currently has an Earnings ESP of +13.74% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Clorox Company CLX has an Earnings ESP of +0.59% and a Zacks Rank #2.

Procter Gamble Company PG currently has an Earnings ESP of +0.37% and a Zacks Rank of 2.

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