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Factors Likely to Influence Newell (NWL) in Q1 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 first-quarter 2022 earnings on Apr 29, before the opening bell.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 27 cents, which suggests a decline of 10% from the year-ago quarter’s figure. The consensus mark has moved down by a penny in the past 30 days. For quarterly revenues, the consensus mark is pegged at $2.27 billion, indicating a decline of 0.8% from the figure reported in the year-ago quarter.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 27.3%. Its bottom line beat the Zacks Consensus Estimate by 43.5%, on average, in the trailing four quarters.
Newell has been grappling with elevated advertising and promotional expenses related to product launches and omnichannel investments. Ongoing inflationary pressures, mainly related to resin, sourced finished goods, transportation and labor, are also likely to have been concerning. This is expected to have weighed on first-quarter margins and the bottom line.
The company also remains exposed to industry-wide supply-chain disruptions, including port congestion, limited container availability, and shortage of labor and truck drivers. These are likely to have dented its first-quarter performance.
However, solid demand, product innovation and robust core sales growth are anticipated to have been upsides. Strength in its e-commerce capabilities, including buy online and pick up in stores, and ship from store, is anticipated to have continued in the to-be-reported quarter.
Newell has been benefiting from healthy consumption trends, which are expected to have boosted sales in the United States. The company’s Writing, Food, Baby, Commercial, Home Appliances and Home Fragrances are likely to have aided the top line in the first quarter.
Also, Newell has been witnessing continued improvement in the Writing Business across all geographic regions. Strong market share gains in the United States, the U.K. and Australia have been aiding its performance. The Writing business is expected to have witnessed growth in the first quarter, driven by innovative products, including Sharpie S-Gel.
On the last reported quarter’s earnings call, management envisioned net sales of $2.25-$2.30 billion, with core sales growth of 2-4%, for first-quarter 2022. The company expects a normalized operating margin of 8.9-9.3% and normalized earnings of 26-28 cents per share.
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 #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Hershey (HSY - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is expected to register top-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.5 billion, which suggests growth of 8.2% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $2.10 per share, suggesting a 9.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 4.3%, on average, in the trailing four quarters.
The Chef’s Warehouse (CHEF - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #3. CHEF is likely to register top-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $490.1 million, which suggests growth of 74.9% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Chef’s Warehouse quarterly earnings has moved up by a penny in the past 30 days to 3 cents per share, suggesting an increase of 106% from the year-ago quarter’s reported number. CHEF has delivered an earnings beat of 308.5%, on average, in the trailing four quarters.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. CTVA is anticipated to register top and bottom-line growth when it reports the first-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $4.53 billion, indicating an improvement of 8.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days to 81 cents per share. However, the consensus estimate for CTVA suggests growth of 2.5% from the year-ago quarter’s reported figure.
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Factors Likely to Influence Newell (NWL) in Q1 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 first-quarter 2022 earnings on Apr 29, before the opening bell.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 27 cents, which suggests a decline of 10% from the year-ago quarter’s figure. The consensus mark has moved down by a penny in the past 30 days. For quarterly revenues, the consensus mark is pegged at $2.27 billion, indicating a decline of 0.8% from the figure reported in the year-ago quarter.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 27.3%. Its bottom line beat the Zacks Consensus Estimate by 43.5%, 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 grappling with elevated advertising and promotional expenses related to product launches and omnichannel investments. Ongoing inflationary pressures, mainly related to resin, sourced finished goods, transportation and labor, are also likely to have been concerning. This is expected to have weighed on first-quarter margins and the bottom line.
The company also remains exposed to industry-wide supply-chain disruptions, including port congestion, limited container availability, and shortage of labor and truck drivers. These are likely to have dented its first-quarter performance.
However, solid demand, product innovation and robust core sales growth are anticipated to have been upsides. Strength in its e-commerce capabilities, including buy online and pick up in stores, and ship from store, is anticipated to have continued in the to-be-reported quarter.
Newell has been benefiting from healthy consumption trends, which are expected to have boosted sales in the United States. The company’s Writing, Food, Baby, Commercial, Home Appliances and Home Fragrances are likely to have aided the top line in the first quarter.
Also, Newell has been witnessing continued improvement in the Writing Business across all geographic regions. Strong market share gains in the United States, the U.K. and Australia have been aiding its performance. The Writing business is expected to have witnessed growth in the first quarter, driven by innovative products, including Sharpie S-Gel.
On the last reported quarter’s earnings call, management envisioned net sales of $2.25-$2.30 billion, with core sales growth of 2-4%, for first-quarter 2022. The company expects a normalized operating margin of 8.9-9.3% and normalized earnings of 26-28 cents per share.
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 #4 (Sell) and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Hershey (HSY - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is expected to register top-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.5 billion, which suggests growth of 8.2% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $2.10 per share, suggesting a 9.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 4.3%, on average, in the trailing four quarters.
The Chef’s Warehouse (CHEF - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #3. CHEF is likely to register top-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $490.1 million, which suggests growth of 74.9% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Chef’s Warehouse quarterly earnings has moved up by a penny in the past 30 days to 3 cents per share, suggesting an increase of 106% from the year-ago quarter’s reported number. CHEF has delivered an earnings beat of 308.5%, on average, in the trailing four quarters.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. CTVA is anticipated to register top and bottom-line growth when it reports the first-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $4.53 billion, indicating an improvement of 8.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days to 81 cents per share. However, the consensus estimate for CTVA suggests growth of 2.5% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.