Newell (NWL) to Report Q4 Earnings: What's in the Offing?
Newell Brands Inc. NWL is expected to witness a year-over-year decline in the top line, when it reports fourth-quarter 2023 results on Feb 9, before the opening bell. For quarterly revenues, the consensus mark is pegged at $1.98 billion, indicating a decline of 13.6% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at 17 cents per share, which suggests a rise of 6.3% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, this Atlanta, GA-based company delivered an earnings surprise of 69.6%. Its bottom line beat the consensus estimate by 34.4%, on average, in the trailing four quarters.
Key Factors to Note
Newell has been gaining from the productivity program and pricing actions. The company has been undertaking significant actions to improve productivity and efficiency by accelerating productivity plans and driving automation. It has also been evaluating opportunities to optimize the category mix within each business unit. These factors are likely tot have aided the company’s margins and bottom line during the to-be-reported quarter. For the quarter, the company expects a normalized operating margin of 7.8-8.8% and a bottom line of 15-20 cents per share.
The company is on track to leverage its e-commerce capabilities, as consumers have been increasingly shifting to the online platform. Capitalizing on the shift to digital consumption, the company has been strengthening its e-commerce business via increased investments and better customer engagement. Its buy online and pick up in stores, and ship from store services have been doing well.
However, Newell has been witnessing a challenging macroeconomic environment and elevated levels of cost inflation. On its last quarter earnings call, management envisioned sales of $1.96-$2.03 billion for fourth-quarter 2023, with a core sales decline of 11-14%. Meanwhile, we expect sales to be $1.98 billion for the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Newell this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Newell Brands Inc. Price and EPS Surprise
Newell Brands Inc. price-eps-surprise | Newell Brands Inc. Quote
Newell currently has an Earnings ESP of -0.33% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
The Boston Beer Company SAM presently has an Earnings ESP of +0.09% and a Zacks Rank of 1. The company is likely to register bottom-line growth when it reports fourth-quarter 2023 numbers.
The Zacks Consensus Estimate for The Boston Beer Company’s quarterly loss per share of 22 cents suggests an improvement from a loss of 93 cents a share reported in the year-ago quarter. SAM has a trailing four-quarter negative earnings surprise of 77.7%, on average. The Zacks Consensus Estimate for quarterly revenues is pegged at $416 million, indicating a drop of 7.1% from the figure reported in the year-ago quarter.
Coca-Cola KO has an Earnings ESP of +0.70% and a Zacks Rank of 2. KO is likely to register top and bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, which suggests growth of 5% from that reported in the prior-year quarter.
The consensus estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days, at 48 cents per share. The consensus estimate suggests 6.7% earnings growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods THS currently has an Earnings ESP of +7.04% and a Zacks Rank of 3. THS is likely to record top and bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pinned at 71 cents per share, calling for a 27.6% decline from the year-ago quarter’s levels. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
Newell Brands Inc. (NWL) : Free Stock Analysis Report
TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
