The 10-second takeaway
For the quarter ended March 31 (Q1), Newell Rubbermaid beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved slightly and GAAP earnings per share improved.
Gross margins grew, operating margins dropped, net margins improved.
Newell Rubbermaid reported revenue of $1.33 billion. The nine analysts polled by S&P Capital IQ predicted net sales of $1.30 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $1.30 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.27 for Q1 were 8.0% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.3%, 60 basis points better than the prior-year quarter. Operating margin was 10.3%, 60 basis points worse than the prior-year quarter. Net margin was 6.0%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.54 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $5.94 billion. The average EPS estimate is $1.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 315 members out of 343 rating the stock outperform, and 28 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Newell Rubbermaid a green thumbs-up, and three 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 $21.71.
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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. He is the 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 don't 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.