Free Research Report as Newell’s Adjusted EPS Beat Estimates

Stock Monitor: Lifetime Brands Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 08, 2018 / If you want access to our free earnings report on Newell Brands Inc. (NYSE: NWL) (“Newell”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NWL. The Company reported its financial results on May 04, 2018, for the first quarter of the fiscal year 2018 (Q1 FY18). The American Company surpassed analysts’ estimates for earnings in Q1 FY18. Additionally, the Company provided its guidance for the full fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Lifetime Brands, Inc. (NASDAQ: LCUT), which also belongs to the Consumer Goods sector as the Company Newell Brands. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Newell Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For Q1 FY18, Newell’s sales declined 7.6% to $3.02 billion compared to $3.27 billion in Q1 FY17, due to the negative impact of divestitures and acquisitions. The Company’s revenue numbers lagged analysts’ estimates of $3.04 million.

For the reported quarter, Newell’s cost of products sold decreased to $2.01 billion versus $2.14 billion in the year ago comparable period. The Company’s gross profit and gross margin dropped to $1.01 billion and 33.3%, respectively, in Q1 FY18 compared to $1.12 billion and 34.2%, correspondingly, in Q1 FY17. The Company incurred selling, general, and administrative expenses (SG&A) of $880.4 million in the reported quarter compared to $931.5 million in the year ago corresponding period.

Newell’s operating income declined to $117.1 million in Q1 FY18 compared to $154.0 million in Q1 FY17. The Company’s operating margin as a percentage of sales was 3.9% in the reported quarter compared to 4.7% in the year ago same period.

For Q1 FY18, Newell reported a net income of $53.3 million compared to $638.5 million in Q1 FY17, primarily attributable to a $784 million gain on the sale of the Tools business in the prior year’s comparable period. The Company’s earnings per share (EPS) declined 91.6% to $0.31 in Q1 FY18 compared to $1.31 in Q1 FY17. The Company reported a normalized EPS of $0.34 in Q1 FY18, beating analysts’ expectations of $0.26.

Segment Details

Newell has five reportable segments, namely (i) Live; (ii) Learn; (iii) Work; (iv) Play; and (v) Other.

For the reported quarter, Newell’s Live segment’s net sales inched up 0.4% to $1.071 billion from $1.068 billion in the prior year’s corresponding period, primarily due to acquisitions. The segment’s operating income and operating margin as a percentage of sales declined to $8.6 million and 0.8%, respectively, in Q1 FY18 compared to $58.3 million and 5.46%, in that order, in Q1 FY17.

During Q1 FY18, Newell’s Learn segment aggregated sales of $495.0 million compared to $569.1 million in Q1 FY17. For the reported quarter, the segment’s operating income dropped 43.6% to $50.0 million compared to $88.6 million in the prior year’s same quarter, due to the impact of lower sales volume and a negative sales mix. The Company’s operating margin was 10.1% in Q1 FY18 compared to 15.6% in Q1 FY17.

Newell’s Work segment added sales of $640.7 million in the reported quarter, up 4.4% from $613.7 million in the year ago comparable period, primarily driven by a growth in the Waddington and Safety and Security units. The segment’s operating income and operating margin as a percentage of sales were $63.3 million and 9.9%, respectively, in Q1 FY18 compared to $62.6 million and 10.2%, respectively, in Q1 FY17.

For Q1 FY18, Newell’s Play segment generated sales of $616.8 million compared to $628.0 million in Q1 FY17, led by a decline in its Outdoor & Recreation category. For the reported period, the segment’s operating income and operating margin declined $54.4 million and 8.8%, respectively, versus $56.1 million and 8.9%, correspondingly, in the corresponding quarter of last year.

Newell’s Other segment sales dipped 50.2% to $192.9 million in Q1 FY18 compared to $387.7 million in Q1 FY17, due to the divestitures of the Tools, Winter Sports, Fire Starter and Fire Log, and Cordage businesses. The segment’s operating income and operating margin jumped to $12.5 million and 6.5%, respectively, in the reported quarter from $4.0 million and 1.0%, correspondingly, in the prior year’s same period.

Cash Matters

As of March 31, 2018, Newell’s cash and cash equivalents stood at $459.0 million compared to $687.5 million as of March 31, 2017. The Company had a long-term debt of $9.62 billion in the reported quarter versus $9.89 billion in the year ago comparable period. For Q1 FY18, the Company’s cash usage in operating activities increased to $401.7 million from $263.6 million in Q1 FY17.

During Q1 FY18, Newell agreed to sell The Waddington Group to Novolex for approximately $2.3 billion. Moreover, the Company has contracted to sell its sporting goods subsidiary, Rawlings Sporting Goods Company, Inc., to a fund managed by Seidler Equity Partners (“SEP”), which will generate gross proceeds of nearly $395 million.

Outlook

For FY18, Newell expects net sales to be in the range of $14.4 billion to $14.8 billion. The Company anticipates EPS to be in the band of $2.65 to $2.85 for FY18. In addition, the Company projects operating cash flow to be in the range of $1.15 billion to $1.45 billion for FY18.

Stock Performance Snapshot

June 07, 2018 – At Thursday’s closing bell, Newell Brands’ stock climbed 1.54%, ending the trading session at $24.47.

Volume traded for the day: 10.82 million shares, which was above the 3-month average volume of 7.24 million shares.

After yesterday’s close, Newell Brands’ market cap was at $12.11 billion.

Price to Earnings (P/E) ratio was at 13.92.

The stock has a dividend yield of 3.76%.

The stock is part of the Consumer Goods sector, categorized under the Housewares & Accessories industry.

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