The 10-second takeaway
For the quarter ended March 31 (Q1), Newell Rubbermaid missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share increased. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Newell Rubbermaid notched revenue of $1.24 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $1.32 billion on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $1.33 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 $0.35. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. Non-GAAP EPS of $0.35 for Q1 were 6.1% higher than the prior-year quarter's $0.33 per share. GAAP EPS of $0.19 for Q1 were 30% lower than the prior-year quarter's $0.27 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 38.2%, 10 basis points worse than the prior-year quarter. Operating margin was 10.7%, 30 basis points worse than the prior-year quarter. Net margin was 4.4%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $6.02 billion. The average EPS estimate is $1.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 312 members out of 340 rating the stock outperform, and 28 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 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 $27.00.
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