Skip to main content

Newell Rubbermaid Easily Tops Targets

Newell Rubbermaid shares jumped as the company's earnings easily beat estimates
  • Author:
  • Publish date:

Investors bid up shares of

Newell Rubbermaid


25% Thursday after the company posted earnings that easily surmounted Wall Street targets, even as sales declined.

The Atlanta consumer-goods company said that, excluding restructuring costs and impairment charges, first-quarter earnings came in at $111.3 million, or 20 cents a shares. Analysts had forecast 8 cents a share, according to Thomson Reuters.

With those charges, Newell earned $33.7 million, or 12 cents a share, in the quarter, down from last year's $57.8 million, or 21 cents a share, which also included restructuring charges.

Sales, meanwhile, fell 16% to $1.2 billion from $1.43 billion, in line with analysts' estimates.

Cost-cutting measures were largely responsible for the better-than-foreseen results, the company indicated, including last month's slashing of its dividend to 5 cents a share from 10.5 cents, which

reduced the stock's dividend yield to 2.76%.

In its pre-market press release announcing first-quarter results, Newell also gave earnings and sales guidance for the rest of the year, targeting second-quarter EPS of 30 to 37 cents and full-year EPS of $1.00 to $1.25. For those periods, analysts are expecting 34 cents and $1.00, respectively.

Newell said it anticipates a 20% decline in its top line for the second quarter when compared with the same period in 2008. The company blamed that fall-off on "aggressive management of inventory by retailers and weak consumer spending."

Newell shares traded recently at $10.66, up $1.99, or 23%, on heavy volume.

Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.