Kimberly-Clark Corporation (NYSE:KMB) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Kimberly-Clark Corporation (NYSE:KMB) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to US$120 in the week after its latest annual results. Kimberly-Clark reported in line with analyst predictions, delivering revenues of US$20b and statutory earnings per share of US$5.21, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kimberly-Clark after the latest results.

Check out our latest analysis for Kimberly-Clark

Taking into account the latest results, Kimberly-Clark's 17 analysts currently expect revenues in 2024 to be US$20.5b, approximately in line with the last 12 months. Per-share earnings are expected to surge 32% to US$6.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.6b and earnings per share (EPS) of US$6.97 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$128, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Kimberly-Clark, with the most bullish analyst valuing it at US$153 and the most bearish at US$110 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Kimberly-Clark's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2024 being well below the historical 2.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kimberly-Clark.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kimberly-Clark's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$128, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Kimberly-Clark going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Kimberly-Clark you should be aware of.

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

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.