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Factors Likely to Decide Newell's (NWL) Fate in Q3 Earnings
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Newell Brands Inc. (NWL - Free Report) is slated to report third-quarter 2019 results on Nov 1, before the opening bell.
The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 70.2%.
Let’s see how things are shaping up prior to this quarterly earnings announcement.
Estimate Picture
The Zacks Consensus Estimate for Newell’s third-quarter earnings is currently pegged at 56 cents, indicating growth of 3.7% from the prior-year quarter’s reported figure. Moreover, the consensus estimate has been raised by a penny in the past 30 days.
For quarterly sales, the consensus estimate stands at $2,439 million, suggesting an improvement of 7.1% from the prior-year quarter’s reported figure.
Factors at Play
Newell’s smooth progress on Accelerated Transformation Plan through innovation, e-commerce and cost savings are likely to get reflected in third-quarter 2019 results. Sales across its e-commerce channel are likely to have benefited from the implementation of the latest digital technology strategy.
Moreover, the company has been divesting its underperforming and non-core brands, and simplifying operations to reshape the business portfolio and improve operational efficiency. These factors are expected to have driven the company’s top and bottom lines in the third quarter.
However, adverse impacts of soft core sales and currency headwinds are likely to have affected the company’s top line in the third quarter. In the last earnings call, Newell had projected net sales of $2.42-$2.47 billion for the third quarter, with core sales decline of 2-4%. It also expected normalized operating margin contraction of 100-130 basis points (bps) to 11.9-12.2%. Further, it projected normalized earnings per share of 55-60 cents. Additionally, the company anticipated adverse currency to have marred the top line by nearly 100 bps in the third quarter.
The Zacks Consensus Estimates for third-quarter sales at Newell’s Learning & Development, Food & Appliances, and Home & Outdoor Living segments stand at $821 million, $673 million and $690 million, respectively. These figures suggest respective declines of 1%, 6.8% and 5.1% on a year-over-year basis.
What Does the Zacks Model Say
Our proven model predicts an earnings beat for Newell this season. 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 has an Earnings ESP of +6.73% and a Zacks Rank #3.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat in the upcoming releases:
Church & Dwight Co., Inc (CHD - Free Report) currently has an Earnings ESP of +0.22% and a Zacks Rank #2.
Altria Group, Inc (MO - Free Report) presently has an Earnings ESP of +1.75% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
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Factors Likely to Decide Newell's (NWL) Fate in Q3 Earnings
Newell Brands Inc. (NWL - Free Report) is slated to report third-quarter 2019 results on Nov 1, before the opening bell.
The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 70.2%.
Let’s see how things are shaping up prior to this quarterly earnings announcement.
Estimate Picture
The Zacks Consensus Estimate for Newell’s third-quarter earnings is currently pegged at 56 cents, indicating growth of 3.7% from the prior-year quarter’s reported figure. Moreover, the consensus estimate has been raised by a penny in the past 30 days.
Newell Brands Inc. Price and EPS Surprise
Newell Brands Inc. price-eps-surprise | Newell Brands Inc. Quote
For quarterly sales, the consensus estimate stands at $2,439 million, suggesting an improvement of 7.1% from the prior-year quarter’s reported figure.
Factors at Play
Newell’s smooth progress on Accelerated Transformation Plan through innovation, e-commerce and cost savings are likely to get reflected in third-quarter 2019 results. Sales across its e-commerce channel are likely to have benefited from the implementation of the latest digital technology strategy.
Moreover, the company has been divesting its underperforming and non-core brands, and simplifying operations to reshape the business portfolio and improve operational efficiency. These factors are expected to have driven the company’s top and bottom lines in the third quarter.
However, adverse impacts of soft core sales and currency headwinds are likely to have affected the company’s top line in the third quarter. In the last earnings call, Newell had projected net sales of $2.42-$2.47 billion for the third quarter, with core sales decline of 2-4%. It also expected normalized operating margin contraction of 100-130 basis points (bps) to 11.9-12.2%. Further, it projected normalized earnings per share of 55-60 cents. Additionally, the company anticipated adverse currency to have marred the top line by nearly 100 bps in the third quarter.
The Zacks Consensus Estimates for third-quarter sales at Newell’s Learning & Development, Food & Appliances, and Home & Outdoor Living segments stand at $821 million, $673 million and $690 million, respectively. These figures suggest respective declines of 1%, 6.8% and 5.1% on a year-over-year basis.
What Does the Zacks Model Say
Our proven model predicts an earnings beat for Newell this season. 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 has an Earnings ESP of +6.73% and a Zacks Rank #3.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat in the upcoming releases:
e.l.f. Beauty, Inc (ELF - Free Report) has an Earnings ESP of +10.71%. It presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Church & Dwight Co., Inc (CHD - Free Report) currently has an Earnings ESP of +0.22% and a Zacks Rank #2.
Altria Group, Inc (MO - Free Report) presently has an Earnings ESP of +1.75% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>