Q4 Earnings: 3 Consumer Staples Titans on Deck

The 2024 Q4 earnings season has picked up notable steam this week, with the reporting docket stacked. Among the bunch of companies expected to report in the coming days include a few consumer staples titans such as Procter & Gamble PG, Johnson & Johnson JNJ, and Kimberly-Clark KMB.See the Zacks Earnings Calendar to stay ahead of market-making news.Let’s take a closer look at how each stacks up heading into their respective quarterly releases.PG Sees Downward RevisionsPG shares have faced some turbulence over the past six months, down roughly 3% but modestly outperforming the Zacks Consumer Staples sector. Analysts have shown some bearishness for the quarter to be reported over the last several months, with the $1.86 Zacks Consensus EPS estimate down 2% over the period and suggesting 1% year-over-year growth.Top line revisions have primarily followed the same path, with forecasted sales of $21.6 billion 0.7% higher than the year-ago figure.Image Source: Zacks Investment ResearchWhile growth is muted, the company’s gross margin has expanded nicely, leading to stronger profitability overall. Please keep in note that the chart is on a trailing twelve-month basis. It’s also worth noting that the company reaffirmed its current year guidance in its latest release, likely limiting any potential spooky surprises.Image Source: Zacks Investment ResearchThe valuation picture here isn’t overly enticing, with the current 22.5X forward 12-month earnings multiple in line with the five-year median and beneath five-year highs of 26.7X. The PEG ratio works out to 3.5X, notably rich for the growth expected.The stock sports a Style Score of ‘D’ for Value.JNJ Margins Come Under PressureJNJ shares have also faced pressure over the past six months, down 2% but again outperforming the Zacks Consumer Staples sector by a fair margin. Similar to PG, analysts have shown slight bearishness for the release, with the $2.00 Zacks Consensus EPS estimate down modestly over the last several months and suggesting a 13% decline year-over-year.Still, decent sales growth is forecasted, with JNJ’s top line expected to expand 5.3% year-over-year.Image Source: Zacks Investment ResearchHowever, the margins picture here has become quite negative, partly explaining the big profitability crunch and declining EPS. Positive commentary surrounding margins would be a major boost for the stock, perhaps sparking some bullish action.Image Source: Zacks Investment ResearchThe valuation picture here is more enticing than PG, with the current 13.9X forward 12-month earnings multiple well beneath the 16.1X five-year median and 19.1X five-year highs. The PEG works out to 2.4X, somewhat steep but otherwise beneath the 2.7X five-year median.The stock sports a Style Score of ‘B’ for Value.KMB Shares Face TurbulenceKimberly-Clark shares have been the worst performers of the bunch over the last six months, declining roughly 10% and widely underperforming relative to the Zacks Consumer Staples sector. Still, the EPS outlook for the release has largely remained stable, with the $1.50 per share expected down just a penny over recent months and suggesting flat growth year-over-year.Top line revisions paint the same story, with revenue expected to fall 3% year-over-year.Image Source: Zacks Investment ResearchThe margins picture for KMB has been bright for some time now, as we can see below. The margin expansion has undoubtedly been a positive but seemingly ignored by investors, with shares essentially flat on a three-year timeframe.Image Source: Zacks Investment ResearchThe valuation picture is fair, with the current 16.7X forward 12-month earnings multiple beneath the five-year median and five-year highs. The PEG ratio works out to 3.6X, undoubtedly a bit steep but otherwise in line with the five-year median.The stock sports a Style Score of ‘C’ for Value.Bottom LineWith the 2024 Q4 earnings season in high gear, we’ll be hearing from a plethora of companies in the coming weeks.And three big names from the Zacks Consumer Staples sector – Procter & Gamble PG, Johnson & Johnson JNJ, and Kimberly-Clark KMB – are among the bunch.Margins will likely be a key item to watch in each’s respective release, with top line growth also a key contributing factor. Given their defensive nature, no spooky post-earnings swings should come.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Johnson & Johnson (JNJ): Free Stock Analysis Report Procter & Gamble Company (The) (PG): Free Stock Analysis Report Kimberly-Clark Corporation (KMB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks