Earnings Preview: Kimberly-Clark

Kimberly-Clark (KMB) is expected to report Q3 earnings before market open Wednesday Oct. 22, with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for a profit of $1.01 on revenue of $4.99B. The consensus is 98c to $1.04 for EPS, and revenue of $4.86B to $5.09B, according to First Call.

Analyst Views

In July, Kimberly-Clark reported in-line Q2 earnings, and gave guidance for Q3 and FY08. The company said it sees Q3 EPS of 98c to $1.03, and FY08 EPS of $4.20 to $4.30, vs. a consensus estimate of $4.24. The company also announced workforce reductions as part of a cost reduction plan.

Analysts have been bullish on Kimberly-Clark recently. On October 3, Buckingham upgraded the company to Accumulate from Neutral, citing the company's defensive business and lower cost pressures. On October 8, Morgan Stanley upgraded Kimberly-Clark to Equal Weight from Underweight, citing increased flexibility from moderating commodity costs. On October 16, Goldman Sachs added Kimberly-Clark to its Conviction Buy List.