Kimberly-Clark Meets on the Top Line, Misses Where it Counts
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.
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.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
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.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
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.
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.
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 this article 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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