Kimberly-Clark Gears Up for Q1 Earnings: Key Factors to Note

Kimberly-Clark Corporation KMB is likely to register top and bottom-line declines when it reports first-quarter 2025 earnings on April 22. The Zacks Consensus Estimate for revenues is pegged at $4.9 billion. The figure indicates a 5.5% decrease from the year-ago quarter. The Zacks Consensus Estimate for quarterly earnings has moved down by 2 cents in the past 30 days to $1.89 per share, indicating a dip of 6% from the year-ago quarter’s reported figure. KMB delivered a trailing four-quarter earnings surprise of 12.5%, on average. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Kimberly-Clark Corporation Price, Consensus and EPS Surprise Kimberly-Clark Corporation price-consensus-eps-surprise-chart | Kimberly-Clark Corporation QuoteThings to Know About KMB’s Upcoming ResultsKimberly-Clark is navigating a dynamic consumer and retail environment, where soft demand and ongoing retail inventory reductions have been weighing on its performance. As a result, our model expects sales decline of 0.9%, 12.5% and 8.8% from North America, International Personal Care and International Family Care & Professional segments, respectively, in the to-be-reported quarter.Kimberly-Clark’s exit from private label creates a near-term revenue headwind, as strategic pullbacks are likely to have put pressure on the top line. In addition, the lingering effects of retailer destocking are likely to have dampened shipment volumes, adding to transitional challenges. Cost pressures remain elevated, with higher pulp prices and limited pricing flexibility compressing margins. Our model expects first-quarter fiscal 2025 adjusted gross profit of $1,801.3 million, down from $1,911 million reported in the year-ago quarter. Yet, Kimberly-Clark is on track with its Powering Care Strategy, which focuses on growth, operational efficiency and organizational alignment. Gains from volume-and-mix-led growth model, supported by innovation and increased adoption of premium products, are likely to have offered some respite in the to-be-reported quarter’s performance.What the Zacks Model Predicts for KMBOur proven model does not conclusively predict an earnings beat for Kimberly-Clark this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.Kimberly-Clark has a Zacks Rank #2 and an Earnings ESP of -0.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.BJ's Wholesale Club Holdings, Inc. BJ currently has an Earnings ESP of +2.09% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for first quarter fiscal 2025 earnings per share (EPS) is pegged at 91 cents, which implies a 7.1% increase year over year. The Zacks Consensus Estimate for BJ's Wholesale Club’s quarterly revenues is pegged at $5.2 billion, which indicates growth of 5.3% from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 12%, on average.Tyson Foods, Inc. TSN currently has an Earnings ESP of +2.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at 85 cents, which implies a 37.1% increase year over year.The Zacks Consensus Estimate for Tyson Foods’ quarterly revenues is pegged at $13.1 billion, which indicates growth of 0.2% from the figure reported in the prior-year quarter. TSN delivered a trailing four-quarter earnings surprise of 52%, on average.Freshpet, Inc. FRPT currently has an Earnings ESP of +2.56% and a Zacks Rank of 3. The Zacks Consensus Estimate for first quarter 2025 EPS is pegged at 13 cents, which implies a 38.1% decrease year over year.The Zacks Consensus Estimate for Freshpet’s quarterly revenues is pegged at $262.3 million, which indicates growth of 17.2% from the figure reported in the prior-year quarter. FRPT delivered a trailing four-quarter earnings surprise of 78.8%, on average.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimberly-Clark Corporation (KMB): Free Stock Analysis Report BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report Tyson Foods, Inc. (TSN): Free Stock Analysis Report Freshpet, Inc. (FRPT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks