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Newell (NWL) Gears Up for Q2 Earnings: What You Should Know
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Newell Brands Inc. (NWL - Free Report) is expected to register a year-over-year decline in the top and bottom lines when it reports second-quarter 2024 results on Jul 26, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2 billion, indicating a drop of 7.5% from the figure reported in the year-ago quarter.
The consensus estimate for the bottom line is 21 cents per share, which indicates a plunge of 12.5% year over year. The consensus mark has remained unchanged in the past 30 days.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 100%. Its bottom line beat the consensus estimate by 70.9%, on average, in the trailing four quarters.
Key Factors to Note
Newell’s quarterly performance is likely to have been marred by a tough macroeconomic environment, including muted demand for discretionary and durable products, stemming from the inflationary pressures. In addition, soft global demand, elevated interest rates and macroeconomic impacts from geopolitical conflicts have been acting as deterrents. Moreover, higher advertising and promotion expenses are likely to have contributed to lower margins and profitability. Foreign currency translations are expected to have been headwinds.
Consequently, management, in its last earnings call, had issued a bleak view for the second quarter. The company had anticipated net sales to drop 7-9%, with a core sales decline of 4-6%, and projected a normalized operating margin of 9.1-9.6%. Management had envisioned normalized earnings per share to be in the range of 18-21 cents, down from 24 cents in the year-earlier quarter. Our model expects a net sales drop of 7.7% and adjusted EPS to decrease 12.8% to 21 cents for the impending quarter.
However, Newell has been making strategic moves to maneuver a tough operating landscape. The company’s front-end commercial capabilities, mainly innovation and new business development, coupled with a more streamlined organizational structure, appear encouraging. Newell has also been accelerating productivity and pricing actions to boost profits. Pricing across the international markets to offset inflation and currency fluctuations has been driving its core sales performance.
Valuation Picture
From a valuation perspective, Newell offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 9.00x, which is below the five-year high of 16.88x and the Consumer Products - Staples industry’s average of 17.32x, the stock offers compelling value for investors seeking exposure to the sector.
However, the recent market movements show that NWL’s shares have fallen 9.3% in the past six months against the industry's 2.9% growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is likely to register a decline in the top line when it reports second-quarter numbers. The Zacks Consensus Estimate for revenues is pegged at $5.08 billion, which indicates a drop of 1.1% from the figure reported in the year-ago quarter.
The consensus estimate for Kimberly-Clark’s quarterly EPS of $1.68 indicates a 1.8% increase from the year-ago quarter. The consensus mark has remained stable in the past 30 days. KMB has a trailing four-quarter earnings surprise of 11.3%, on average.
Colgate (CL - Free Report) currently has an Earnings ESP of +0.45% and a Zacks Rank of 2. CL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5.02 billion, indicating growth of 4.1% from the figure reported in the year-ago quarter.
The consensus estimate for Colgate’s earnings has remained stable in the past 30 days at 87 cents per share. The consensus mark indicates 13% growth from the year-ago quarter’s reported figure. CL has delivered an earnings beat of 4.4%, on average, in the trailing four quarters.
Church & Dwight (CHD - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 3, at present. CHD is likely to register top-line growth when it releases second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.51 billion, which indicates growth of 3.8% from the figure reported in the year-ago quarter.
The consensus estimate for Church & Dwight’s quarterly earnings has remained unchanged in the past 30 days at 84 cents per share, indicating a decline of 8.7% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 9.6%, on average, in the trailing four quarters.
Image: Bigstock
Newell (NWL) Gears Up for Q2 Earnings: What You Should Know
Newell Brands Inc. (NWL - Free Report) is expected to register a year-over-year decline in the top and bottom lines when it reports second-quarter 2024 results on Jul 26, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2 billion, indicating a drop of 7.5% from the figure reported in the year-ago quarter.
The consensus estimate for the bottom line is 21 cents per share, which indicates a plunge of 12.5% year over year. The consensus mark has remained unchanged in the past 30 days.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 100%. Its bottom line beat the consensus estimate by 70.9%, on average, in the trailing four quarters.
Key Factors to Note
Newell’s quarterly performance is likely to have been marred by a tough macroeconomic environment, including muted demand for discretionary and durable products, stemming from the inflationary pressures. In addition, soft global demand, elevated interest rates and macroeconomic impacts from geopolitical conflicts have been acting as deterrents. Moreover, higher advertising and promotion expenses are likely to have contributed to lower margins and profitability. Foreign currency translations are expected to have been headwinds.
Consequently, management, in its last earnings call, had issued a bleak view for the second quarter. The company had anticipated net sales to drop 7-9%, with a core sales decline of 4-6%, and projected a normalized operating margin of 9.1-9.6%. Management had envisioned normalized earnings per share to be in the range of 18-21 cents, down from 24 cents in the year-earlier quarter. Our model expects a net sales drop of 7.7% and adjusted EPS to decrease 12.8% to 21 cents for the impending quarter.
However, Newell has been making strategic moves to maneuver a tough operating landscape. The company’s front-end commercial capabilities, mainly innovation and new business development, coupled with a more streamlined organizational structure, appear encouraging. Newell has also been accelerating productivity and pricing actions to boost profits. Pricing across the international markets to offset inflation and currency fluctuations has been driving its core sales performance.
Valuation Picture
From a valuation perspective, Newell offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 9.00x, which is below the five-year high of 16.88x and the Consumer Products - Staples industry’s average of 17.32x, the stock offers compelling value for investors seeking exposure to the sector.
However, the recent market movements show that NWL’s shares have fallen 9.3% in the past six months against the industry's 2.9% growth.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Newell Brands Inc. Price and EPS Surprise
Newell Brands Inc. price-eps-surprise | Newell Brands Inc. Quote
Newell currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +0.27% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a decline in the top line when it reports second-quarter numbers. The Zacks Consensus Estimate for revenues is pegged at $5.08 billion, which indicates a drop of 1.1% from the figure reported in the year-ago quarter.
The consensus estimate for Kimberly-Clark’s quarterly EPS of $1.68 indicates a 1.8% increase from the year-ago quarter. The consensus mark has remained stable in the past 30 days. KMB has a trailing four-quarter earnings surprise of 11.3%, on average.
Colgate (CL - Free Report) currently has an Earnings ESP of +0.45% and a Zacks Rank of 2. CL is anticipated to register top and bottom-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $5.02 billion, indicating growth of 4.1% from the figure reported in the year-ago quarter.
The consensus estimate for Colgate’s earnings has remained stable in the past 30 days at 87 cents per share. The consensus mark indicates 13% growth from the year-ago quarter’s reported figure. CL has delivered an earnings beat of 4.4%, on average, in the trailing four quarters.
Church & Dwight (CHD - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank of 3, at present. CHD is likely to register top-line growth when it releases second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.51 billion, which indicates growth of 3.8% from the figure reported in the year-ago quarter.
The consensus estimate for Church & Dwight’s quarterly earnings has remained unchanged in the past 30 days at 84 cents per share, indicating a decline of 8.7% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 9.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.