The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Newell Rubbermaid met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly, and GAAP earnings per share improved.
Margins improved across the board.
Newell Rubbermaid tallied revenue of $1.50 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $1.50 billion. Sales were 1.8% higher than the prior-year quarter's $1.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.40. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.38 per share on the same basis. GAAP EPS of $0.28 for Q4 were 5.8% higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 37.2%, 10 basis points better than the prior-year quarter. Operating margin was 10.9%, 50 basis points better than the prior-year quarter. Net margin was 5.4%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $5.98 billion. The average EPS estimate is $1.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 323 members out of 354 rating the stock outperform, and 31 members rating it underperform. Among 133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Newell Rubbermaid a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Newell Rubbermaid is outperform, with an average price target of $19.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.