Earnings Preview: Newell Rubbermaid

| About: Newell Brands (NWL)

Newell Rubbermaid (NYSE:NWL) is expected to report Q2 earnings before the market open on Thursday, July 30 with a conference call scheduled for 9:00 am ET.


Analysts are looking for a profit of 35c on revenue of $1.46B. The consensus range is 32c-37c for EPS, and revenue of $1.45B-$1.48B, according to First Call. In April, Newell guided Q2 EPS 21c-28c on a revenue decline of 20%; the company also forecast FY09 EPS $1.00-$1.25 versus analysts' estimates of $1.14 and revenue down 10%-15%. At the Deutsche Bank Global Consumer and Food Retail Conference in June, the company guided FY09 net sales $5.5B-$5.8B versus analysts' estimates of $5.58B and, over the long term, forecast annual EPS growth up in the double digits and internal sales up 3%-5%.

Analyst Views

Deutsche Bank analyst Bill Schmitz Jr. believes Newell's sales will fall 20% this quarter, including product cuts and the economic slowdown. He said the hardware, commercial and tools segment is "most prone" to the housing slowdown, while office products "is directly impacted by the reduction in white-collar employment and office super center inventory eliminations." Shares rose about 63% during the quarter.