Kimberly-Clark (KMB, $132.03) posts -12% drop in Q1 earnings
Personal care company Kimberly-Clark reported a -12% drop in first-quarter earnings and a -5% decrease in revenue.
For the three months ended March 31, Kimberly-Clark’s earnings came in at $1.72 a share, down from the year-ago quarter’s $1.92 a share.
Revenue fell -5% year-over-year to $4.74 billion.
"First-quarter comparisons were impacted by COVID-19 related stock up in the year-ago period, consumer tissue category softness and commodity inflation. We also experienced temporary supply chain disruptions related to severe weather conditions in the southern part of the United States," Chairman and Chief Executive Mike Hsu said.
For 2021, the company lowered its adjusted earnings per share projection to a range of $7.30 to $7.55, from $7.75 to $8. It also cut its organic sales growth outlook to flat to positive 1%, from growth of 1% to 2%. The company cited a volatile and challenging near-term environment.
KMB in downward trend: price dove below 50-day moving average on May 24, 2023
KMB moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend. In of 43 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 09, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on KMB as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for KMB turned negative on May 05, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KMB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for KMB entered a downward trend on May 26, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KMB advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
KMB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KMB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (64.103) is normal, around the industry mean (68.228). P/E Ratio (23.364) is within average values for comparable stocks, (180.317). Projected Growth (PEG Ratio) (2.651) is also within normal values, averaging (7.386). Dividend Yield (0.034) settles around the average of (0.028) among similar stocks. P/S Ratio (2.275) is also within normal values, averaging (69.606).
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