Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Investors were unable to contain their enthusiasm today after Newell Rubbermaid (NYSE: NWL) reported better-than-expected earnings. The stock popped 11% in intraday trading even though the company lowered guidance.

So what: Second quarter non-GAAP EPS of $0.46 fell 10% year over year but was 10% above the consensus estimate. GAAP EPS of $0.49 grew 20% from the year-earlier quarter. Revenue of $1.57 billion increased 5% year over year and was slightly above the consensus forecast of $1.55 billion. An increase in sales volume, favorable pricing, and lower interest expense were more than offset by higher input costs and SG&A expenses, dragging down earnings.

Now what: The company's new CEO said earnings were "tempered by difficult U.S. and European economies and the ongoing challenges in the baby and parenting category." Non-GAAP EPS guidance for 2011 was lowered to a range of $1.55 and $1.62 from a range of $1.60 to $1.67. That straddles the consensus estimate of $1.58; many may have expected guidance to be lowered further than it was. What's more, the solid second-quarter EPS beat suggests that the new CEO may guide conservatively, leaving room for upside.  

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