Bull Of The Day: Newell Brands (NWL)

Newell Brands, Inc. (NWL - Free Report) is seeing improvement from its turnaround strategy. This Zacks Rank #1 (Strong Buy) just posted a big third quarter earnings beat and raised full year guidance.

Newell Brands is a consumer goods company with many well-known brands including Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®,Marmot®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert® and Yankee Candle®.

Big Third Quarter Beat

On Nov 1, Newell reported its third quarter results and beat the Zacks Consensus by 17 cents. Earnings were $0.73 versus the consensus of $0.56.

It was the 9th consecutive quarterly earnings beat.

The company has been in a turnaround mode and has a new CEO who spent the first 30 days on the job visiting all 7 businesses, the e-Commerce Group and the Design Center.

Despite the turnaround plan, net sales still declined by 3.8% year-over-year to $2.5 billion. Core sales were down 2.5% but did see an increase in 4 of the 7 operating divisions.

The Home & Outdoor Living segment saw net sales of $723 million, down from $727 million a year ago. Core sales growth of 1.3% was offset by unfavorable foreign exchange and the exit of 72 underperforming Yankee Candle retail stores in the first nine months of 2019.

The Learning & Development saw net sales of $824 million versus $829 million a year ago with core sales growth of 0.5% offest by the headwind from foreign exchange. Core sales did increase, however, at both the Baby and Writing divisions within the segment.

The Appliances & Cookware segment saw net sales of $430 million, down from $454 million in the third quarter of 2018, due to the impact of the unfavorable foreign exchange as well as a core sales decrease of 3.7%.

The Food & Commercial segment also saw a year-over-year decline in net sales of $473 million, down from $539 million. Core sales fell 11.3% and there was a headwind from foreign exchange.

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Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

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