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Newell (NWL) Beats on Q1 Earnings, Revenues Lags Estimates

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Newell Brands Inc. (NWL - Free Report) came out with first-quarter 2018 results, wherein normalized earnings of 34 cents beat the Zacks Consensus Estimate of 26 cents. However, the bottom line remained flat year over year.

For 2018, management continues to expect normalized earnings per share in a band of $2.65-$2.85 per share.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2018 has witnessed a downtrend in the past seven days. However, if we look at Newell’s performance in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 3.3%.

Newell Brands Inc. Price, Consensus and EPS Surprise

Newell Brands Inc. Price, Consensus and EPS Surprise | Newell Brands Inc. Quote

Revenues: Newell generated net sales of $ 3,017.4 million that dropped 7.6% year over year and came below the Zacks Consensus Estimate of $3,039 million. The decline in sales can mainly be attributed to the negative effect of acquisitions and divestitures. Moreover, core sales decreased 3.5%. Management still anticipates net sales in the band of $14.4-$14.8 billion for 2018.

Key Events: In sync with its Accelerated Transformation plan, Newell inked a deal to divest its global consumer and commercial package manufacturing unit, The Waddington Group, to Novolex for roughly $2.3 billion.

Zacks Rank: Currently, Newell carries a Zacks Rank #4 (Sell) which is subject to change following the just released earnings results.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on Newell’s earnings report!

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