Newell Rubbermaid Inc.
) is set to declare second-quarter 2013 results on Jul 26. In the
last quarter, the company's adjusted earnings surpassed the Zacks
Consensus Estimate by 9.4%. Let us now look at how things have
developed for the imminent announcement.
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Growth Factors in the Past Quarter
The year-over-year earnings growth resulted from a better
operating performance, lower interest expenses and a favorable
tax rate. The company's strong brand portfolio, capital
deployment strategy and Project Renewal Program also facilitated
the company to post better-than-expected results.
Our proven model does not conclusively project that Newell
Rubbermaid is likely to beat earnings estimate this quarter. A
stock needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following factors:
ESP for Newell Rubbermaid is 0.00% since the Most Accurate
Estimate stands at 49 cents, which is in line with the Zacks
Zacks #2 Rank (Buy):
Newell Rubbermaid's Zacks Rank #2 (Buy) lowers the predictive
power of ESP because the Zacks Rank #2 when combined with a 0.00%
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Newell Rubbermaid is not the only firm we are looking up to this
earnings season. Our model shows that the following stocks have
the right combination of elements to post an earnings beat this
The Gap, Inc.
) has an Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).
Five Below, Inc
) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).
Deckers Outdoor Corp.
) has an Earnings ESP of +6.60% and a Zacks Rank #3 (Hold).