Categories Consumer, Earnings

Earnings: Newell Brands stock spikes after Q1 results beat estimates

Consumer goods company Newell Brands (Nasdaq: NWL) reported a decline in adjusted earnings for the first quarter of 2019, owing to a decrease in sales. The results, however, surpassed estimates and the company’s stock gained in pre-market trading Friday.Newell Brands Q1 2019 earnings

Adjusted earnings declined sharply to $0.14 per share in the March quarter from $0.28 per share last year, but came in above the estimates. On a reported basis, the company posted a net loss of $151.2 million or $0.36 per share during the quarter, compared to earnings of $53.3 million or $0.11 per share in the same period of 2018.

The earnings performance was negatively impacted by a 5.5% decline in net sales to $1.71 billion. However, the results topped the Street view. Core sales came under pressure from the adverse market conditions, dragging down the top-line which was also impacted by unfavorable currency exchange rates.

Core sales came under pressure from the adverse market condition, dragging the top-line which was also impacted by unfavorable currency exchange rates

“Sales were at the higher-end of our expectations, operating margins increased as a result of disciplined cost management, normalized EPS was well ahead of our expectations, and operating cash flow was significantly improved versus last year. We have taken decisive action to strengthen performance and those actions are beginning to yield results,” said CEO Michael Polk.

During the quarter, margins and cash flow got a boost from the management’s cost-cutting efforts. The company expects market conditions to improve in the current fiscal year as the headwinds from the Toys’R’ Us bankruptcy and the slowdown in the Writing industry have started easing.

Encouraged by the positive results, the management has guided second-quarter revenues above the consensus estimate – in the range of $2.10 billion to $2.15 billion. Adjusted earnings are expected to be between $0.34 per share and $0.38 per share in the June quarter.

Related: Newell Brands Q4 2018 Earnings Conference Call Transcript

For fiscal 2019, the company forecasts revenues in the $8.2-$8.4 billion range, which is slightly below the market’s projection. The outlook for full-year earnings is $1.50-$1.65 per share.

Shares of Newell witnessed significant volatility in recent years and are currently trading at the lowest level in more than seven years. The stock closed the last trading session notably higher and moved up 2% early Friday after the earnings report.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Weibo (WB) Earnings: 1Q21 Key Numbers

Weibo Corporation (NASDAQ: WB) reported first-quarter 2021 earnings results today. Net revenues increased by 42% year-over-year at $458.9 million and 31% increase on a constant currency basis. Net income attributable

Earnings calendar for the week of May 10

Stock markets rallied amid mixed cues on the health of the labor market, with latest data showing that payrolls grew at a slower-than-expected pace while unemployment claims slipped below the

Apple-Epic legal fight could set a new paradigm for mobile app distribution

These days the tech world is abuzz with the legal battle between gadget giant Apple, Inc. (NASDAQ: AAPL) and Epic Games, which has elicited significant media interest. The trial in

Add Comment
Viewing Highlight