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Can Newell Brands (NWL) Deliver Earnings Surprise in Q1?
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Newell Brands Inc. (NWL - Free Report) is slated to report first-quarter 2017 results on May 8, 2017, before the market opens. The big question facing investors is whether this global manufacturer and marketer of consumer and commercial products will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, the company delivered earnings in line with the Zacks Consensus Estimate. In fact, the company has outperformed the Zacks Consensus Estimate in 18 out of the past 20 quarters, with an average beat of 6.2% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Newell’s superb earnings history reflects the splendid performance of its brand as well as its latest Growth Game Plan, ongoing Project Renewal Program and solid acquisitions.
Newell has been gaining from various strategic efforts like solidifying portfolio and simplifying operating structure, under the new growth game plan. Evidently, Newell recently acquired Smith Industries and Sistema Plastics; sold major Tools business brands; and agreed to sell Teutonia baby stroller, Pine Mountain and Diamond businesses. Also, with Project Renewal Program on track, Newell is set to generate targeted cost savings. These factors, along with a raised 2017 view highlight its future prospects.
However, significant global presence exposes the company to currency headwinds, posing threats. Further, macroeconomic uncertainty and volatile consumer behavior remain concerns.
While the company’s shares have risen 2.7% year to date, it has underperformed the Zacks categorized Consumer Products – Miscellaneous Staples industry, which grew 8.8%. So let’s see whether Newell can keep its spectacular track record in place this time around too.
Earnings Whispers
Our proven model does not conclusively show that Newell is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Newell currently has an Earnings ESP of -3.45%. This is because both the Most Accurate estimate of 28 cents is pegged below the Zacks Consensus Estimate of 29 cents. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Newell’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of -3.45% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Home Depot Inc (HD - Free Report) , slated to release earnings on May 16, currently has an Earnings ESP of +0.62% and a Zacks Rank #2 (Buy).
Best Buy Co. Inc. (BBY - Free Report) , scheduled to release earnings on May 25, currently has an Earnings ESP of +12.50% and a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Can Newell Brands (NWL) Deliver Earnings Surprise in Q1?
Newell Brands Inc. (NWL - Free Report) is slated to report first-quarter 2017 results on May 8, 2017, before the market opens. The big question facing investors is whether this global manufacturer and marketer of consumer and commercial products will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, the company delivered earnings in line with the Zacks Consensus Estimate. In fact, the company has outperformed the Zacks Consensus Estimate in 18 out of the past 20 quarters, with an average beat of 6.2% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Newell Brands Inc. Price and EPS Surprise
Newell Brands Inc. Price and EPS Surprise | Newell Brands Inc. Quote
Factors Influencing This Quarter
Newell’s superb earnings history reflects the splendid performance of its brand as well as its latest Growth Game Plan, ongoing Project Renewal Program and solid acquisitions.
Newell has been gaining from various strategic efforts like solidifying portfolio and simplifying operating structure, under the new growth game plan. Evidently, Newell recently acquired Smith Industries and Sistema Plastics; sold major Tools business brands; and agreed to sell Teutonia baby stroller, Pine Mountain and Diamond businesses. Also, with Project Renewal Program on track, Newell is set to generate targeted cost savings. These factors, along with a raised 2017 view highlight its future prospects.
However, significant global presence exposes the company to currency headwinds, posing threats. Further, macroeconomic uncertainty and volatile consumer behavior remain concerns.
While the company’s shares have risen 2.7% year to date, it has underperformed the Zacks categorized Consumer Products – Miscellaneous Staples industry, which grew 8.8%. So let’s see whether Newell can keep its spectacular track record in place this time around too.
Earnings Whispers
Our proven model does not conclusively show that Newell is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Newell currently has an Earnings ESP of -3.45%. This is because both the Most Accurate estimate of 28 cents is pegged below the Zacks Consensus Estimate of 29 cents. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Newell’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of -3.45% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Home Depot Inc (HD - Free Report) , slated to release earnings on May 16, currently has an Earnings ESP of +0.62% and a Zacks Rank #2 (Buy).
Wal-Mart Stores Inc. (WMT - Free Report) , scheduled to release earnings on May 18, currently has an Earnings ESP of +2.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Best Buy Co. Inc. (BBY - Free Report) , scheduled to release earnings on May 25, currently has an Earnings ESP of +12.50% and a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>