Kimberly-Clark Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kimberly-Clark (NYSE:KMB) will unveil its latest earnings tomorrow, Friday, January 25, 2013. Kimberly-Clark manufactures and markets a range of mostly paper-based consumer products.

Kimberly-Clark Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.36 per share, a rise of 6.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.33. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.36 during the last month. Analysts are projecting profit to rise by 9% versus last year to $5.23.

Past Earnings Performance: Last quarter, the company reported profit of $1.34 per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the third quarter, profit rose 19.7% to $517 million ($1.30 a share) from $432 million ($1.09 a share) the year earlier, exceeding analyst expectations. Revenue fell 2.5% to $5.25 billion from $5.38 billion.

Here’s how Kimberly-Clark traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

KMB

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.15 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.28 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 17.4% to $6.03 billion while assets rose 5.1% to $6.93 billion.

Stock Price Performance: From December 19, 2012 to January 18, 2013, the stock price rose $1.83 (2.2%), from $85 to $86.83. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 5, 2012, when shares rose for eight straight days, increasing 3.8% (+$3.10) over that span. It saw one of its worst periods between October 18, 2012 and October 26, 2012 when shares fell for seven straight days, dropping 5.6% (-$4.93) over that span.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 33.7% in the first quarter and 22.1% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 2% in the fourth quarter of the last fiscal year, 4.2% in the first quarter and 0.2%in the second quarter before dropping in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 14 analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts are projecting a rise of 0.2% in revenue from the year-earlier quarter to $5.19 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)