Yahoo Finance Kimberly-Clark Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a good week for Kimberly-Clark Corporation (NYSE:KMB) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.4% to US$138. Revenues were US$5.1b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.91 were also better than expected, beating analyst predictions by 13%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Kimberly-Clark
Following last week's earnings report, Kimberly-Clark's 16 analysts are forecasting 2024 revenues to be US$20.5b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 25% to US$6.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.5b and earnings per share (EPS) of US$6.79 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$137, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Kimberly-Clark analyst has a price target of US$167 per share, while the most pessimistic values it at US$115. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Kimberly-Clark shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Kimberly-Clark's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2024 being well below the historical 2.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kimberly-Clark.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kimberly-Clark going out to 2026, and you can see them free on our platform here.
Even so, be aware that Kimberly-Clark is showing 2 warning signs in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
