Stock Analysis

Analysts Are Updating Their Kimberly-Clark de México, S. A. B. de C. V. (BMV:KIMBERA) Estimates After Its Third-Quarter Results

BMV:KIMBER A
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Shareholders might have noticed that Kimberly-Clark de México, S. A. B. de C. V. (BMV:KIMBERA) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.5% to Mex$30.49 in the past week. Results were roughly in line with estimates, with revenues of Mex$13b and statutory earnings per share of Mex$0.59. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Kimberly-Clark de México S. A. B. de C. V

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BMV:KIMBER A Earnings and Revenue Growth October 20th 2024

After the latest results, the ten analysts covering Kimberly-Clark de México S. A. B. de C. V are now predicting revenues of Mex$58.5b in 2025. If met, this would reflect a notable 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 14% to Mex$2.68. Before this earnings report, the analysts had been forecasting revenues of Mex$58.7b and earnings per share (EPS) of Mex$2.72 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of Mex$41.75, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Kimberly-Clark de México S. A. B. de C. V analyst has a price target of Mex$52.00 per share, while the most pessimistic values it at Mex$35.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Kimberly-Clark de México S. A. B. de C. V's growth to accelerate, with the forecast 7.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Kimberly-Clark de México S. A. B. de C. V is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Kimberly-Clark de México S. A. B. de C. V going out to 2026, and you can see them free on our platform here..

Even so, be aware that Kimberly-Clark de México S. A. B. de C. V is showing 2 warning signs in our investment analysis , you should know about...

Valuation is complex, but we're here to simplify it.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.