In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from KMB and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
In the last quarter it reported $1.24 EPS, beating analyst estimates of $1.17.
The consensus EPS estimate is $1.28 based on 14 analysts' estimates, up from $1.18 a year ago. Revenue estimates are $5.28B, just above $5.26B a year ago. The median target price by analysts for the stock is $80.00.
Average recommendation: Hold
Analyst Upgrades and Downgrades
- On June 21, 2012, Argus upgraded the company from Hold to Buy.
- On January 24, 2012, UBS downgraded the company from Buy to Neutral.
- On April 20, 2012, Kimberly-Clark Corporation announced that for fiscal 2012, it expects adjusted earnings per share (EPS) in the range of $5.00 to $5.15. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $5.11 for fiscal 2012.
- On February 28, 2012, Kimberly-Clark Corporation announced that its board of directors has approved a dividend increase of 5.7 percent. This will bring the quarterly dividend to 74 cents per share, up from 70 cents per share in 2011.
- On January 24, 2012, Kimberly-Clark Corporation announced that for fiscal 2012, it expects Adjusted earnings per share to be $5.00 to $5.15 and Net sales are expected to increase of 0% to 1%. The Company reported revenues of $20.846 billion in fiscal 2011.
The Clorox Company (CLX), Energizer Holdings (ENR), Johnson & Johnson (JNJ), and Procter & Gamble (PG) are considered major competitors for Kimberly-Clark Corporation and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
Competitors' Latest Development
- On July 17, 2012, Johnson & Johnson adjusted earnings guidance for fiscal 2012 to $5.00-$5.07 per share. The Company's guidance excludes the impact of special items and reflects the negative impact of recent currency movements, partially offset by the positive contribution from the Synthes acquisition.
- On July 16, 2012, Johnson & Johnson announced that its Board of Directors has declared a cash dividend for the third quarter of 2012 of $0.61 per share on the Company's common stock.
- On July 13, 2012, Reuters reported that activist investor William Ackman looks ready to take on management at yet another major company as he builds a stake in Procter & Gamble Co. Ackman's $10 billion Pershing Square Capital Management has been buying shares in P&G for the last few weeks and may want to increase its stake further.
- On July 10, 2012, Procter & Gamble Co announced that its Board of Directors declared a quarterly dividend of $0.562 per share on the Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company, payable on or after August 15, 2012 to Common Stock and Series A and Series B ESOP Convertible Class A Preferred Stock shareholders of record at the close of business on July 20, 2012.
- On July 9, 2012, Reuters reported that Bayer AG and Johnson & Johnson's anti-blood-clotting pill Xarelto won priority review status from the U.S. Food and Drug Administration for the treatment of deep vein thrombosis and pulmonary embolism.
- On June 22, 2012, Reuters reported that Johnson & Johnson said on June 21, 2012, that U.S. regulators have declined to approve a new use for its Xarelto blood clot preventer to reduce the risk of heart attacks and strokes in patients with acute coronary syndrome.
- On June 21, 2012, Reuters reported that Johnson & Johnson is close to reaching a settlement with the U.S. Justice Department over allegations it promoted anti psychotic drug Risperdal for unapproved uses that could cost the healthcare conglomerate at least $1.5 billion.
- On June 20, 2012, Procter & Gamble Co announced that for the fourth quarter of 2012, it expects organic sales growth to be in the range of 2%-3%, compared to a prior range of 4%-5%, Foreign exchange to reduce net sales by 4%, net sales to be in the range of down 2%-1% compared to a prior range of an increase of 1%-2%.
- On June 14, 2012, Johnson & Johnson announced the completion of the acquisition of Synthes, Inc. for a total purchase price of $19.7 billion in cash and stock. Synthes will be integrated with the DePuy franchise to establish the DePuy Synthes Companies of Johnson & Johnson.
- On June 13, 2012, Reuters reported that Johnson & Johnson expects to complete its $19.7 billion purchase of Swiss medical device maker Synthes Inc. on Thursday and that the deal will slightly boost company profit this year, rather than being a moderate drag on earnings as previously expected.
- On June 12, 2012, Reuters reported that Johnson & Johnson has won U.S. antitrust approval to buy Swiss medical device company Synthes Inc if it sells some assets, the Federal Trade Commission said on Monday.
- On June 5, 2012, Law Office of Brodsky & Smith, LLC announced that it is investigating potential claims against DePuy Orthopedics and its corporate parent Johnson & Johnson on behalf of individuals that received either an DePuy ASR XL Acetabular System or an DePuy ASR Hip Resurfacing System.
- On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
- On May 31, 2012, Kellogg Company announced the completion of its acquisition of Procter & Gamble's Pringles business.
- On May 24, 2012, Reuters reported that U.S. advisers recommended against expanding the use of Johnson & Johnson's blood thinner Xarelto as a way to reduce the risk of new heart attacks and strokes in people with heart problems.
- On May 17, 2012, Reuters reported that Johnson & Johnson advanced prostate cancer drug, Zytiga, to hormone therapy before surgery has been shown for the first time to eradicate tumors in some men with high-risk forms of the disease.
- On May 15, 2012, Jones Lang LaSalle announced that it is extending its global strategic alliance relationship with The Procter & Gamble Company following Procter & Gamble's competitive selection process to select a commercial facilities service partner.
- On May 15, 2012, The Clorox Company announced that its board of directors increased the quarterly cash dividend on the Company's common stock by 6.7% , from $0.6 to $0.64 per share.
- On May 2, 2012, Energizer Holdings Inc announced plans to initiate a dividend program commencing later this year. Subject to declaration by the Board, the Company plans to initiate a quarterly dividend of $0.40 per share in the fourth quarter of its fiscal 2012, which ends September 30, 2012.
- On May 2, 2012, Energizer Holdings Inc reaffirmed fiscal 2012 earnings guidance of $6.00 to $6.20 per share. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $6.10 for fiscal 2012.
- On May 2, 2012, The Clorox Co. announced that for fiscal 2013, it expects sales growth in the range of 2%-4% and Diluted EPS in the range of $4.20-$4.35. For fiscal 2012, it updated its sales guidance and expects sales growth of about 4%, versus the previous outlook of 2%-4% and diluted earnings per share in the range of $4.00-$4.10 for fiscal 2012.
- On April 27, 2012, Procter & Gamble Co announced that for fiscal 2012, it expects net sales to increase 4%, organic sales to increase 4%, diluted net earnings per share to be in the range of $3.63 to $3.74, which includes a gain of $0.47 to $0.50 on the sale of the Snacks business and core EPS to be in the range of $3.82-$3.88, down 1% to in line versus a base period core EPS of $3.87. For the fourth quarter of 2012, it expects net sales growth to be up 1% to 2%, organic sales to grow 4% to 5%, with continued benefit from pricing.
- On April 26, 2012, Johnson & Johnson announced that its Board of Directors have declared a 7.0% increase in the quarterly dividend rate, from $0.57 per share to $0.61 per share.
The stock has a market capitalization of $33.75B and is currently trading at $85.90 with a 52 week range of $61.00 - $86.25. The stock's year-to-date performance has been 19.33%. It is currently trading above 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.