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Newell to Report Q4 Earnings: What Surprise Awaits Investors?
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Newell Brands Inc. (NWL - Free Report) is expected to register year-over-year declines in the top and bottom lines when it reports fourth-quarter 2024 results on Feb. 7, 2025, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2 billion, indicating a drop of 5% from the figure reported in the year-ago quarter.
The consensus estimate for the bottom line is 13 cents per share, which indicates a plunge of more than 40% year over year. The consensus mark has gone down a penny in the past seven days.
In the last reported quarter, the Atlanta, GA-based company’s earnings matched the Zacks Consensus Estimate. Its bottom line beat the consensus estimate by 50.2%, on average, in the trailing four quarters.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors Likely to Impact NWL’s Q4 Results
Newell’s impending quarter’s performance is likely to have been hurt by a challenging macroeconomic environment and elevated levels of core inflation that might have led to muted demand for discretionary and durable products. In addition, soft global demand and macroeconomic impacts from geopolitical conflicts have been acting as deterrents. Foreign currency translations are expected to have been headwinds.
Management, in its last earnings call, had expected the broader general merchandise market to be down low single digits in 2024. The company had projected net sales to dip 4-7% year over year in fourth-quarter 2024, with a core sales drop of 2-5% mainly owing to adverse foreign currency. It had expected a normalized operating margin in the band of 7-7.7% for the impending quarter, with higher selling, general and administrative expenses in both dollars and as a percentage of sales. For the final quarter of 2024, NWL had envisioned normalized earnings per share (EPS) to be in the range of 11-14 cents, down from 22 cents earned in the year-earlier quarter.
We expect net sales to fall 4.5% and adjusted EPS to decline 23.1% year over year for the fourth quarter.
On the positive front, Newell has been making strategic moves to maneuver a tough operating landscape. The company’s front-end commercial capabilities, mainly innovation and new business development, coupled with a more streamlined organizational structure, appear encouraging. NWL has also been accelerating productivity and pricing actions. This, coupled with pricing across the international markets to offset inflation and currency fluctuations, is likely to have somewhat offered a cushion to the company’s performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Newell this season. 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Newell currently has an Earnings ESP of -5.03% and a Zacks Rank #4 (Sell).
Valuation Picture
From a valuation perspective, Newell offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 12.91X, which is below the five-year high of 16.88X and the Consumer Products - Staples industry’s average of 21.59X, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that NWL shares have gained 14.8% in the past three months against the industry's 1% dip.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.8 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter.
The consensus estimate for Kenvue’s fourth-quarter 2024 EPS is pegged at 25 cents, which implies a 19.4% decrease year over year. KVUE has a trailing four-quarter earnings surprise of 10.2%, on average.
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank of 3 at present. ELF is likely to register top and bottom-line growth when it releases third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $329.7 million, implying growth of 21.7% from that reported in the year-ago quarter.
The consensus estimate for e.l.f. Beauty’s quarterly earnings has moved down a penny in the past 30 days to 76 cents per share, indicating growth of 2.7% from the year-ago quarter’s number. ELF has a trailing four-quarter average earnings surprise of 45.1%.
Monster Beverage (MNST - Free Report) currently has an Earnings ESP of +0.84% and a Zacks Rank of 3. The company is expected to register top and-bottom-line growth when it reports fourth-quarter 2024 results. Although the Zacks Consensus Estimate for MNST’s quarterly earnings has been stable in the last 30 days at 40 cents per share, the projection indicates 5.3% growth from the year-ago quarter's number.
Th consensus estimate for Monster Beverage’s quarterly revenues is pegged at $1.8 billion, implying a rise of 3.7% from the figure in the prior-year quarter. MNST reported a negative earnings surprise of 5.2%, on average, in the trailing four quarters.
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Newell to Report Q4 Earnings: What Surprise Awaits Investors?
Newell Brands Inc. (NWL - Free Report) is expected to register year-over-year declines in the top and bottom lines when it reports fourth-quarter 2024 results on Feb. 7, 2025, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2 billion, indicating a drop of 5% from the figure reported in the year-ago quarter.
The consensus estimate for the bottom line is 13 cents per share, which indicates a plunge of more than 40% year over year. The consensus mark has gone down a penny in the past seven days.
In the last reported quarter, the Atlanta, GA-based company’s earnings matched the Zacks Consensus Estimate. Its bottom line beat the consensus estimate by 50.2%, on average, in the trailing four quarters.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors Likely to Impact NWL’s Q4 Results
Newell’s impending quarter’s performance is likely to have been hurt by a challenging macroeconomic environment and elevated levels of core inflation that might have led to muted demand for discretionary and durable products. In addition, soft global demand and macroeconomic impacts from geopolitical conflicts have been acting as deterrents. Foreign currency translations are expected to have been headwinds.
Management, in its last earnings call, had expected the broader general merchandise market to be down low single digits in 2024. The company had projected net sales to dip 4-7% year over year in fourth-quarter 2024, with a core sales drop of 2-5% mainly owing to adverse foreign currency. It had expected a normalized operating margin in the band of 7-7.7% for the impending quarter, with higher selling, general and administrative expenses in both dollars and as a percentage of sales. For the final quarter of 2024, NWL had envisioned normalized earnings per share (EPS) to be in the range of 11-14 cents, down from 22 cents earned in the year-earlier quarter.
We expect net sales to fall 4.5% and adjusted EPS to decline 23.1% year over year for the fourth quarter.
On the positive front, Newell has been making strategic moves to maneuver a tough operating landscape. The company’s front-end commercial capabilities, mainly innovation and new business development, coupled with a more streamlined organizational structure, appear encouraging. NWL has also been accelerating productivity and pricing actions. This, coupled with pricing across the international markets to offset inflation and currency fluctuations, is likely to have somewhat offered a cushion to the company’s performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Newell this season. 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 is not the case here. You can uncover the best stocks before they are 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 -5.03% and a Zacks Rank #4 (Sell).
Valuation Picture
From a valuation perspective, Newell offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 12.91X, which is below the five-year high of 16.88X and the Consumer Products - Staples industry’s average of 21.59X, the stock offers compelling value for investors seeking exposure to the sector.
The recent market movements show that NWL shares have gained 14.8% in the past three months against the industry's 1% dip.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Kenvue Inc. (KVUE - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $3.8 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter.
The consensus estimate for Kenvue’s fourth-quarter 2024 EPS is pegged at 25 cents, which implies a 19.4% decrease year over year. KVUE has a trailing four-quarter earnings surprise of 10.2%, on average.
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank of 3 at present. ELF is likely to register top and bottom-line growth when it releases third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $329.7 million, implying growth of 21.7% from that reported in the year-ago quarter.
The consensus estimate for e.l.f. Beauty’s quarterly earnings has moved down a penny in the past 30 days to 76 cents per share, indicating growth of 2.7% from the year-ago quarter’s number. ELF has a trailing four-quarter average earnings surprise of 45.1%.
Monster Beverage (MNST - Free Report) currently has an Earnings ESP of +0.84% and a Zacks Rank of 3. The company is expected to register top and-bottom-line growth when it reports fourth-quarter 2024 results. Although the Zacks Consensus Estimate for MNST’s quarterly earnings has been stable in the last 30 days at 40 cents per share, the projection indicates 5.3% growth from the year-ago quarter's number.
Th consensus estimate for Monster Beverage’s quarterly revenues is pegged at $1.8 billion, implying a rise of 3.7% from the figure in the prior-year quarter. MNST reported a negative earnings surprise of 5.2%, on average, in the trailing four quarters.