How Will Newell Rubbermaid (NWL) Stock React to Earnings Guidance Update?

NEW YORK (TheStreet) --Newell Rubbermaid Inc. (NWL) issued updated earnings guidance for the 2014 fiscal year, and introduced its fiscal 2015 earnings estimates.

The global marketer of consumer and commercial products reaffirmed its fiscal 2014 guidance, but said that its core 2014 sales growth "is tracking to the low end" of its 3.5% to 4% increase expectations, and earnings per share are tracking to the high end of its $1.94 to $2 range.

For fiscal 2015, Newell is forecasting normalized earnings per share between $2.16 and $2.22, and a 3% to 4% core sales growth.

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Analysts polled by Thomson Reuters are expecting earnings of $2.20 per share, and a 5% earnings growth for fiscal 2015.

Shares of Newell Rubbermaid are lower by 0.86% to $34.71 in mid-morning trading on Wednesday.

Separately, TheStreet Ratings team rates NEWELL RUBBERMAID INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NEWELL RUBBERMAID INC (NWL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NWL's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 3.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 32.50% and other important driving factors, this stock has surged by 26.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NWL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NEWELL RUBBERMAID INC has improved earnings per share by 32.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEWELL RUBBERMAID INC increased its bottom line by earning $1.45 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.45).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Household Durables industry average. The net income increased by 37.1% when compared to the same quarter one year prior, rising from $109.80 million to $150.60 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market, NEWELL RUBBERMAID INC's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: NWL Ratings Report

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