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Things You Need to Know Before Newell's (NWL) Q3 Earnings

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Newell Brands Inc. (NWL - Free Report) is slated to report third-quarter 2020 results on Oct 30, before the opening bell. Although the Zacks Consensus Estimate for third-quarter earnings has risen 2 cents to 44 cents over the past 30 days, the same suggests a plunge of 39.7% from the year-ago quarter’s tally. Further, the consensus mark for quarterly revenues is pegged at $2,490 million, indicating 1.6% growth from the figure reported in the year-ago quarter.

However, the Atlanta, GA-based company’s earnings have outperformed the Zacks Consensus Estimate in the trailing four quarters by an average surprise of 38.7%.

Key Factors to Note

Newell Brands has been benefiting from robust consumption patterns stemming from changing consumer habits amid the ongoing COVID-19 situation. Evidently, the company is witnessing sales growth in a few categories, which in turn is contributing to the Food, Commercial, Appliances & Cookware and Outdoor & Recreation categories. Gains from these endeavors are likely to get reflected in the company’s third-quarter top line.

Moreover, strength in e-commerce remains a key growth driver. With consumers increasingly shifting to the online platform due to the pandemic, increased e-commerce sales contribution is likely to have aided results in the to-be-reported quarter. Apart from these, its Project FUEL plan for 2020, which focuses on enhancing productivity, looks encouraging.

However, the company is reeling under uncertain COVID-19 impacts, such as supply-chain disruptions and soft demand. Also, a declining trend in core sales and unfavorable foreign currency remain headwinds.

Newell Brands Inc. Price and EPS Surprise

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Newell Brands this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re  reported with our Earnings ESP Filter.

Newell Brands carries a Zacks Rank #2 and an Earnings ESP of +0.33%.

More Stocks With Favorable Combinations

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

Nu Skin Enterprise (NUS - Free Report) currently has an Earnings ESP of +3.54% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medifast (MED - Free Report) presently has an Earnings ESP of +1.54% and a Zacks Rank #3.

Tyson Foods (TSN - Free Report) presently has an Earnings ESP of +9.57% and a Zacks Rank #3.

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