Shares of Newell Brands (NWL +13.57%) furthered their recent rally on Monday, as analysts grow more bullish on the Sharpie maker's turnaround prospects.
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A return to growth
Newell Brands' second-quarter net sales rose 3% year-over-year to $2 billion. That marked the first time in more than four years that the company generated positive sales growth.
Core sales, which exclude the impact of acquisitions, divestitures, and foreign-currency fluctuations, grew 2.3%.
"The improvement was broad-based across the portfolio and reflects stronger innovation, higher levels of advertising and promotional support, and vastly improved go-to-market capabilities we have built over the past several years," CEO Chris Peterson said.
NASDAQ: NWL
Key Data Points
Tariff refunds helped to further boost Newell Brands' profits. Its adjusted operating income jumped 56% to $324 million, while its adjusted earnings per share climbed 75% to $0.42.
Management also lifted its full-year earnings per share guidance to between $0.73 and $0.77, up from a prior forecast of $0.56 to $0.60.
Analysts see more gains ahead
The results prompted Canaccord Genuity to reiterate its buy rating on Newell Brands' stock and boost its share price target from $9 to $11.
The investment bank's new price forecast indicates potential gains of more than 70% for investors buying shares today.
