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Market Overview

Preview: Kimberly-Clark's Earnings

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On Thursday, October 22, Kimberly-Clark (NYSE: KMB) will release its latest earnings report. Benzinga's outlook for Kimberly-Clark is included in the following report.

Net Income, Earnings, And Earnings Per Share

Earnings and earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equates to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Kimberly-Clark management projections, analysts predict EPS of $1.75 on revenue of $4.58 billion. Kimberly-Clark earnings in the same period a year ago was $1.84 per share. Quarterly sales came in at $4.64 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 4.89% decline in the company's EPS figure. Sales would have fallen 1.29% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.77 1.96 1.69 1.80
EPS Actual 2.20 2.13 1.71 1.84
Revenue Estimate 4.44 B 4.88 B 4.52 B 4.65 B
Revenue Actual 4.61 B 5.01 B 4.58 B 4.64 B

Stock Performance

Over the last 52-week period, shares of Kimberly-Clark are up 9.97%.

 

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Posted-In: Earnings