The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Kimberly-Clark missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins expanded.
Kimberly-Clark recorded revenue of $5.25 billion. The 10 analysts polled by S&P Capital IQ hoped for a top line of $5.34 billion on the same basis. GAAP reported sales were 2.5% lower than the prior-year quarter's $5.38 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.34. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.32 per share. GAAP EPS of $1.30 for Q3 were 19% higher than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.7%, 240 basis points better than the prior-year quarter. Operating margin was 14.9%, 70 basis points worse than the prior-year quarter. Net margin was 9.9%, 190 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.20 billion. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $21.11 billion. The average EPS estimate is $5.20.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,011 members out of 1,064 rating the stock outperform, and 53 members rating it underperform. Among 344 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 334 give Kimberly-Clark a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kimberly-Clark is hold, with an average price target of $86.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Kimberly-Clark. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.