Kimberly-Clark Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Kimberly-Clark (NYS: KMB) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kimberly-Clark met expectations on revenues and missed slightly on earnings per share.

Compared to the prior-year quarter, revenue grew slightly, and earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Kimberly-Clark notched revenue of $5.2 billion. The 10 analysts polled by S&P Capital IQ foresaw a top line of $5.2 billion. Sales were 2.0% higher than the prior-year quarter's $5.1 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.28. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.30 per share on the same basis. GAAP EPS of $1.01 for Q4 were 16% lower than the prior-year quarter's $1.20 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.8%, 260 basis points worse than the prior-year quarter. Operating margin was 11.8%, 410 basis points worse than the prior-year quarter. Net margin was 7.7%, 200 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.1 billion. On the bottom line, the average EPS estimate is $1.20.

Next year's average estimate for revenue is $21.3 billion. The average EPS estimate is $5.24.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 990 members out of 1,043 rating the stock outperform, and 53 members rating it underperform. Among 354 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 345 give Kimberly-Clark a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kimberly-Clark is outperform, with an average price target of $74.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Kimberly-Clark. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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