Newell Brands Q4 Results Beat Estimates; Issues Guidance

Newell Brands (NWL) delivered better-than-expected fourth-quarter and full-year results characterized by core sales growth. Revenue and earnings came in above consensus estimates as the company successfully navigated a difficult operating environment amid inflationary pressures. NWL shares jumped 11.07% to close at $24.39 on February 11.

Newell Brands designs, manufactures, and sells consumer and commercial products. It operates through the Food and Appliances, Home and Outdoor Living, and Learning and Development segments. Newell Brands’ upcoming earnings report for Q1 2022 is scheduled for May 06, 2022.

Newell Brands Earnings

Net sales in the quarter were up 4.3% year-over-year to $2.8 billion. The increase is attributed to strong demand across many categories. Core sales in the quarter were up 5.8% year-over-year, with six out of eight businesses posting revenue growth. Full-year net sales increased 12.8% year-over-year to $10.6 billion.

Diluted earnings per share fell to $0.42 compared to $0.56 delivered in the same quarter last year but still better than consensus estimates of $0.32. Full-year diluted earnings increased to $1.82 a share compared to $1.79 in the prior year.

Newell Brands expects full-year sales to range between $9.93 billion and $10.13 billion. Earnings per share are expected at between $1.85 and $1.93. Net sales in the first quarter are expected at between $2.25 billion and $2.30 billion with EPS of between $0.26 and $0.28.

In addition, Newell Brands has reached an agreement to sell the Connected Home & Security business to Resideo Technologies for $593 million. The transaction should close before the end of the first quarter.

Stock Rating

Last week, RBC Capital analyst Nik Modi reiterated a Hold rating on Newell Brands stock with a $23 price target, implying 5.70% downside to current levels.

Consensus among analysts is a Hold based on 1 Buy and 3 holds. The average Newell Brands price target of $27.75 implies 13.78% upside potential to current levels.

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