Newell (NWL) Earnings And Sales Surpass Estimates In Q4
Zacks Investment Research | Feb 13, 2020 08:55PM ET
Newell Brands Inc. (NASDAQ:NWL) has delivered better-than-expected earnings and sales results in fourth-quarter 2019. However, its top and bottom lines declined year over year on lost contributions from divested businesses, adverse foreign currency translations and a decline in overall core sales.
Nevertheless, management remains optimistic on the progress of its turnaround efforts along with operating cash flow remaining ahead of its plan. This is backed by the company’s commitment toward productivity, overhead cost savings, complexity reduction and working capital initiatives. As a result, it outlined its view for the first quarter and 2020.
Driven by the better-than-expected results, shares of Newell rose 2.5% in the pre-market trading session on Feb 14. However, shares of the Zacks Rank #3 (Hold) company have declined 1.1% in the past three months against the industry ’s 6% growth.
Q4 Highlights
Newell’s fourth-quarter normalized earnings per share were 42 cents, which outpaced the Zacks Consensus Estimate of 39 cents. However, the metric fell 36.4% from 66 cents earned in the year-ago period. The year-over-year decline was mainly attributed to the lack of contributions from its divested operations.
Newell Brands Inc. Price, Consensus and EPS Surprise
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