Newell Brands Ups Forecast Amid Q1 Earnings Beat

Written by StockNews.com

Newell Brands Inc. (NYSE: NWL) early Monday posted better than expected first quarter earnings results and boosted its full-year outlook, as a recent acquisition begins to pay off.

The Hoboken, NJ-based consumer products maker reported Q1:

earnings per share (EPS) of $0.34, which was $0.05 better than the Wall Street consensus estimate of $0.29 [while]
revenues rose 148.4% from last year to $3.27 billion, compared with analysts’ view for $3.23 billion. The big jump in revenue was due to:
- the acquisition of the Jarden business,
- along with competitive core sales growth...

Looking ahead, Newell Brands:

boosted its full-year EPS outlook to a range of $3.00 to $3.20, up from $2.95 to $3.15, and still in-line with analysts’ estimate of $3.05 per share for the year [and]
reiterated its 2017 revenue outlook of $14.52 to $14.72 billion, also in-line with Wall Street’s $14.7 billion view.

The company commented via press release:

“We have had a good start to 2017 and are on our way to unlock the transformative value creation associated with our long term guidance.

We are confident that simultaneous growth and margin development fueled by savings and synergies will generate strong cash flow, leading to rapid deleveraging and then more aggressive value-creating uses of capital.

We believe this transformative value creation story is unique to Newell Brands given:

our leading brand positions in large global categories,

the inherent opportunities presented through the new scale of the company,

the investments we are making in new capabilities

and the strong cash generative nature of our businesses.

This confidence is shared by our Board of Directors which has approved a 21% increase of the quarterly dividend to $0.23 per share.”

Newell Brands Inc. shares rose $1.38 (+2.97%) in premarket trading Monday. Year-to-date, NWL has gained 4.32%, versus a 7.70% rise in the benchmark S&P 500 index during the same period.

NWL currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #42 of 62 stocks in the Home Improvement & Goods category.