Kimberly-Clark Earnings Approach

S&P 500 (NYSE:SPY) component Kimberly-Clark (NYSE:KMB) will unveil its latest earnings on Wednesday, October 24, 2012. 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 profit of $1.32 per share, a rise of 4.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 8.1% compared to last year’s $5.19.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of $1.30 per share against a mean estimate of profit of $1.28, and the quarter before, the company exceeded forecasts by 7 cents with net income of $1.24 versus a mean estimate of profit of $1.17.

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A Look Back: In the second quarter, profit rose 22.1% to $498 million ($1.26 a share) from $408 million ($1.03 a share) the year earlier, exceeding analyst expectations. Revenue rose 0.2% to $5.27 billion from $5.26 billion.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $4.28 (5.1%), from $83.40 to $87.68. 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 July 18, 2012 and July 25, 2012 when shares fell for six straight days, dropping 3.1% (-$2.67) over that span.

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

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.1% in the third quarter of the last fiscal year, 2% in the fourth quarter of the last fiscal year and 4.2% in the first quarter before increasing again in the second quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 7.3% for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $5.34 billion in revenue this quarter, a decline of 0.7% from the year-ago quarter. Analysts are forecasting total revenue of $21.07 billion for the year, a rise of 1.1% from last year’s revenue of $20.85 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.28 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.

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

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