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Here's What You Must Know Ahead of Newell's (NWL) Q4 Earnings
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Newell Brands Inc. (NWL - Free Report) is expected to witness a year-over-year decline in the top and bottom lines when it reports fourth-quarter 2021 earnings on Feb 11, before the opening bell. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 33 cents, which suggests a plunge of 41.1% from the year-ago quarter’s figure. The consensus mark has been unchanged in the past 30 days.
For quarterly revenues, the consensus mark is pegged at $2.66 billion, indicating a decline of 1% from the figure reported in the year-ago quarter.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 8%. Its bottom line beat the Zacks Consensus Estimate by 40.9%, on average, in the trailing four quarters.
Newell has been gaining from solid demand, product innovation and robust core sales growth, aiding the quarterly results. Continued improvement in the Writing business also bodes well. The company has been gaining from efforts to capitalize on the shift to digital consumption through solid e-commerce business, which is anticipated to have continued in the to-be-reported quarter.
The company has been benefiting from healthy consumption trends, which are expected to have boosted sales in the United States. The company’s food and commercial, Baby and Home Fragrance, and Connected Home & Security businesses are likely to have gained from strong consumption trends in the fourth quarter.
Additionally, Newell has been witnessing continued improvement in the Writing Business, recording core sales growth of double digits in this unit in the third quarter. Broad-based strength in the United States and international markets has been aiding its performance. The Writing business is expected to have witnessed growth in the fourth quarter, driven by innovative products, including Sharpie S-Gel and Sharpie S-Note, as well as robust merchandising plans and distribution gains.
On the last reported quarter’s earnings call, management envisioned net sales of $2.6-$2.68 billion for fourth-quarter 2021, with core sales down 2% to up 1% year over year. For the quarter, the company expected a normalized operating margin of 8.7-9.2% and normalized earnings of 29-33 cents a share.
However, Newell has been witnessing elevated advertising and promotional expenses related to product launches and omni-channel investments. This is expected to have led to continued SG&A deleverage in the to-be-reported quarter. Higher costs are anticipated to have weighed on fourth-quarter margins and the bottom line. On the last reported quarter’s earnings call, management anticipated inflationary cost pressure to escalate further in the fourth quarter, which is expected to have hurt margins.
NWL has also been exposed to port congestion, limited container availability, and shortage of labor and truck drivers. Significant inflation in freight costs and supply-chain disruptions are likely to have been concerning.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Newell this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Newell currently carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:
Service Corporation International (SCI - Free Report) currently has an Earnings ESP of +17.39% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 numbers. The consensus mark for SCI’s quarterly earnings has moved up by a penny in the past 30 days to $1.00 per share. However, the consensus estimate suggests an 11.5% decline from the year-ago quarter’s reported number.
Service Corporation’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which suggests a rise of 4.3% from the figure reported in the prior-year quarter.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2022 results. The consensus mark for HRL's quarterly revenues is pegged at $2.87 billion, which suggests a rise of 16.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate has moved down 8.3% to 44 cents per share in the past 30 days. The consensus estimate indicates 7.3% growth from 41 cents reported in the year-ago quarter.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2021 earnings. The consensus mark for GO’s quarterly revenues is pegged at $774.2 million, which suggests a 4% decline from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has been unchanged in the past 30 days at 20 cents per share. However, the consensus estimate for GO has witnessed a 16.7% decline from the year-ago quarter.
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Here's What You Must Know Ahead of Newell's (NWL) Q4 Earnings
Newell Brands Inc. (NWL - Free Report) is expected to witness a year-over-year decline in the top and bottom lines when it reports fourth-quarter 2021 earnings on Feb 11, before the opening bell. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 33 cents, which suggests a plunge of 41.1% from the year-ago quarter’s figure. The consensus mark has been unchanged in the past 30 days.
For quarterly revenues, the consensus mark is pegged at $2.66 billion, indicating a decline of 1% from the figure reported in the year-ago quarter.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 8%. Its bottom line beat the Zacks Consensus Estimate by 40.9%, on average, in the trailing four quarters.
Newell Brands Inc. Price and EPS Surprise
Newell Brands Inc. price-eps-surprise | Newell Brands Inc. Quote
Key Factors to Note
Newell has been gaining from solid demand, product innovation and robust core sales growth, aiding the quarterly results. Continued improvement in the Writing business also bodes well. The company has been gaining from efforts to capitalize on the shift to digital consumption through solid e-commerce business, which is anticipated to have continued in the to-be-reported quarter.
The company has been benefiting from healthy consumption trends, which are expected to have boosted sales in the United States. The company’s food and commercial, Baby and Home Fragrance, and Connected Home & Security businesses are likely to have gained from strong consumption trends in the fourth quarter.
Additionally, Newell has been witnessing continued improvement in the Writing Business, recording core sales growth of double digits in this unit in the third quarter. Broad-based strength in the United States and international markets has been aiding its performance. The Writing business is expected to have witnessed growth in the fourth quarter, driven by innovative products, including Sharpie S-Gel and Sharpie S-Note, as well as robust merchandising plans and distribution gains.
On the last reported quarter’s earnings call, management envisioned net sales of $2.6-$2.68 billion for fourth-quarter 2021, with core sales down 2% to up 1% year over year. For the quarter, the company expected a normalized operating margin of 8.7-9.2% and normalized earnings of 29-33 cents a share.
However, Newell has been witnessing elevated advertising and promotional expenses related to product launches and omni-channel investments. This is expected to have led to continued SG&A deleverage in the to-be-reported quarter. Higher costs are anticipated to have weighed on fourth-quarter margins and the bottom line. On the last reported quarter’s earnings call, management anticipated inflationary cost pressure to escalate further in the fourth quarter, which is expected to have hurt margins.
NWL has also been exposed to port congestion, limited container availability, and shortage of labor and truck drivers. Significant inflation in freight costs and supply-chain disruptions are likely to have been concerning.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Newell this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Newell currently carries a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:
Service Corporation International (SCI - Free Report) currently has an Earnings ESP of +17.39% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter 2021 numbers. The consensus mark for SCI’s quarterly earnings has moved up by a penny in the past 30 days to $1.00 per share. However, the consensus estimate suggests an 11.5% decline from the year-ago quarter’s reported number.
Service Corporation’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which suggests a rise of 4.3% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2022 results. The consensus mark for HRL's quarterly revenues is pegged at $2.87 billion, which suggests a rise of 16.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate has moved down 8.3% to 44 cents per share in the past 30 days. The consensus estimate indicates 7.3% growth from 41 cents reported in the year-ago quarter.
Grocery Outlet (GO - Free Report) currently has an Earnings ESP of +8.45% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2021 earnings. The consensus mark for GO’s quarterly revenues is pegged at $774.2 million, which suggests a 4% decline from the figure reported in the prior-year quarter.
The consensus mark for quarterly earnings has been unchanged in the past 30 days at 20 cents per share. However, the consensus estimate for GO has witnessed a 16.7% decline from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.