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Kimberly-Clark Third Quarter Earnings Preview
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KMB
On Wednesday, October 24, 2012, Kimberly-Clark (NYSE:KMB) will report its third quarter earnings.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: Kimberly-Clark is expected to report $1.32 per share, up 4.8% from a year ago when the company reported earnings of $1.26 per share.
Analysts are projecting earnings of $5.19 per share for the fiscal year.
Revenue for the quarter is expected to be $5.34 billion, short of last year's reported figure of $5.38 billion by 0.8%. For the fiscal year, expected revenue is $21.07 billion.
Company Performance: Revenue for Kimberly-Clark has been on the rise for four consecutive quarters. It increased 0.2% to $5.27 billion in the second quarter. Prior to that, the figure rose 4.2% in the first quarter, 2% in the fourth quarter of the last fiscal year and 8.1% in the third quarter of the last fiscal year.
The company's earnings have been rising for the last eight quarters, and for the last four, net income has increased year-over-year by an average of 7.3%.
KMB's P/E ratio of 19.3 is above the industry average of 12.65. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Understanding The P/E Ratio
The stock price has risen from $84.70 on July 23, 2012 to $87.68 over the past quarter. Kimberly-Clark's stock price is currently on the rise. Since October 12, 2012 business days the stock has risen $2.03 per share.
The Competition: Kimberly-Clark manufactures and markets a range of mostly paper-based consumer products. Ten of 14 analysts rate Kimberly-Clark a hold. They have become increasingly pessimistic about the stock, as the number of buy ratings has dropped slightly over the last three months.
The company's closest competitor in the personal and household prods. industry is Procter & Gamble (PG). Analysts are less optimistic about Kimberly-Clark than about Procter & Gamble. Ten out of 23 analysts rate the latter a buy compared to four of 14 for the former.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: Kimberly-Clark is expected to report $1.32 per share, up 4.8% from a year ago when the company reported earnings of $1.26 per share.
Analysts are projecting earnings of $5.19 per share for the fiscal year.
Revenue for the quarter is expected to be $5.34 billion, short of last year's reported figure of $5.38 billion by 0.8%. For the fiscal year, expected revenue is $21.07 billion.
Company Performance: Revenue for Kimberly-Clark has been on the rise for four consecutive quarters. It increased 0.2% to $5.27 billion in the second quarter. Prior to that, the figure rose 4.2% in the first quarter, 2% in the fourth quarter of the last fiscal year and 8.1% in the third quarter of the last fiscal year.
KMB's P/E ratio of 19.3 is above the industry average of 12.65. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Understanding The P/E Ratio
The stock price has risen from $84.70 on July 23, 2012 to $87.68 over the past quarter. Kimberly-Clark's stock price is currently on the rise. Since October 12, 2012 business days the stock has risen $2.03 per share.
The Competition: Kimberly-Clark manufactures and markets a range of mostly paper-based consumer products. Ten of 14 analysts rate Kimberly-Clark a hold. They have become increasingly pessimistic about the stock, as the number of buy ratings has dropped slightly over the last three months.
The company's closest competitor in the personal and household prods. industry is Procter & Gamble (PG). Analysts are less optimistic about Kimberly-Clark than about Procter & Gamble. Ten out of 23 analysts rate the latter a buy compared to four of 14 for the former.
by
Investopedia Staff
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