Analysts Have Made A Financial Statement On Kimberly-Clark de México, S. A. B. de C. V.'s (BMV:KIMBERA) Second-Quarter Report

Last week saw the newest second-quarter earnings release from Kimberly-Clark de México, S. A. B. de C. V. (BMV:KIMBERA), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of Mex$14b were in line with what the analysts predicted, Kimberly-Clark de México S. A. B. de C. V surprised by delivering a statutory profit of Mex$0.69 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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

After the latest results, the ten analysts covering Kimberly-Clark de México S. A. B. de C. V are now predicting revenues of Mex$55.8b in 2024. If met, this would reflect a credible 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.5% to Mex$2.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$55.2b and earnings per share (EPS) of Mex$2.55 in 2024. So the consensus seems to have become somewhat more optimistic on Kimberly-Clark de México S. A. B. de C. V's earnings potential following these results.

There's been no major changes to the consensus price target of Mex$43.64, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kimberly-Clark de México S. A. B. de C. V, with the most bullish analyst valuing it at Mex$52.00 and the most bearish at Mex$38.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Kimberly-Clark de México S. A. B. de C. V's rate of growth is expected to accelerate meaningfully, with the forecast 7.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kimberly-Clark de México S. A. B. de C. V to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kimberly-Clark de México S. A. B. de C. V's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at Mex$43.64, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Kimberly-Clark de México S. A. B. de C. V. Long-term earnings power is much more important than next year's profits. We have forecasts 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.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Kimberly-Clark de México S. A. B. de C. V that you should be aware of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com