Kimberly-Clark Corporation KMB is likely to display year-over-year growth in the top line, when it reports fourth-quarter 2021 numbers on Jan 26. The Zacks Consensus Estimate for revenues is pegged at $4,961 million, suggesting a rise of 2.6% from the prior-year quarter’s reported figure. The consensus mark for 2021 revenues is pegged at $19,431 million, indicating a rise of 1.5% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at $1.29 per share, suggesting a decline of 23.7% from the figure reported in the prior-year quarter. The company’s consensus mark for 2021 bottom-line is pegged at $6.15 per share, indicating a decline of 20.5% from the year-ago period’s reported figure. In the last reported quarter, the personal care products company reported a negative earnings surprise of 2.4%. The company has a trailing four-quarter negative earnings surprise of 4.4%, on average.

KimberlyClark Corporation Price, Consensus and EPS Surprise

KimberlyClark Corporation price-consensus-eps-surprise-chart | KimberlyClark Corporation Quote

Things To Note

Kimberly-Clark has been encountering high input costs in the past few quarters. On its last earnings call, management stated that key input costs for 2021 are now estimated to flare up $1,400-$1,500 million compared with the $1,200-$1,300 million projected before. The updated input cost guidance is accountable to higher polymer-based materials, distribution costs and energy rates. Management expects an adjusted operating profit decline of 20-22% in fiscal 2021. Kimberly-Clark envisions 2021 adjusted earnings per share of $6.05-$6.25, which reflects the impacts of escalated input cost inflation. The metric came in at $7.74 in 2020.

Apart from this, Kimberly-Clark expects 2021 organic sales decline of 1-2%. Adverse impacts from the COVID-19 resurgence and supply chain disruptions are likely to have hurt the metric. The company’s Consumer Tissue segment has been seeing tough year-over-year volume comparisons stemming from higher shipments in North America and developed markets owing to a spike in demand amid the pandemic.

Nevertheless, Kimberly-Clark has been undertaking measures to cut costs. This is highlighted by the 2018 Global Restructuring Program and the Focus on Reducing Costs Everywhere or FORCE Program. Management expects total cost savings of $520-$540 million in 2021, including $390-$400 million from the FORCE program and $130-$140 million from the 2018 Global Restructuring Program. In addition, Kimberly-Clark is on track to undertake relevant pricing actions to counter inflation.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Kimberly-Clark this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kimberly-Clark carries a Zacks Rank #3 and has an Earnings ESP of -1.17%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.

Mondelez International MDLZ currently has an Earnings ESP of +1.57% and a Zacks Rank #3. MDLZ is likely to register top-and bottom-line growth when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $7.5 billion, suggesting growth of 3.3% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Mondelez International’s quarterly earnings has been unchanged in the past 30 days at 72 cents per share, suggesting growth of 7.5% from the year-ago quarter’s reported number. MDLZ delivered an earnings beat of 3.3%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hershey HSY currently has an Earnings ESP of +0.90% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the last 7 days to $1.63 per share, calling for a 9.4% rise from the year-ago quarter’s reported number.

Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.3 billion, suggesting a rise of 3.4% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.4%, on average, in the trailing four quarters.

Coty Inc. COTY currently has an Earnings ESP of +37.14% and a Zacks Rank #3. COTY is anticipated to register top-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coty’s bottom line has moved up by a penny in the past seven days to 12 cents per share. However, the consensus estimate for earnings suggests a decline of 29.4% from the year-ago quarter’s reported figure. COTY delivered an earnings beat of 66.4%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Hershey Company The (HSY) : Free Stock Analysis Report

KimberlyClark Corporation (KMB) : Free Stock Analysis Report

Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report

Coty (COTY) : Free Stock Analysis Report

To read this article on Zacks.com click here.