Newell Rubbermaid Inc.
) is scheduled to report its first-quarter fiscal 2014 results
before the market opens on May 2. Last quarter, this producer of
Sharpie pens and Rubbermaid containers posted a positive earnings
surprise of approximately 2.17%. Let's see how things are shaping
up for this announcement.
Growth Factors in the Past Quarter
Newell posted better-than-expected earnings results for
fourth-quarter fiscal 2013 benefiting from enhanced operating
performance, lower share count and lower tax rate. Top-line
growth coupled with improved gross profit helped increase
operating income, while operating margin remained flat.
During the quarter, the company benefited from the cost
savings generated by the Project Renewal initiatives that were
diverted towards advertising and promotional expenses, offset by
higher advertising expenses. Further, the company remains
optimistic about its fiscal 2014 results and provided an
encouraging guidance for the year.
Our proven model does not conclusively project Newell as likely
to beat earnings this quarter. A stock needs to have both a
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, this is not the case here due to the following factors:
ESP for Newell is 0.00% since the Most Accurate estimate stands
at 32 cents per share, which is in line with the Zacks Consensus
Zacks Rank #4 (Sell):
Newell's Zacks Rank #4 when combined with 0.00% ESP makes
surprise prediction difficult. We caution against stocks with a
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks That Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
The Walt Disney Company
) Earnings ESP stands at +1.03% and it carries a Zacks Rank #2
Vitamin Shoppe Inc.
) with an Earnings ESP of +1.47% holds a Zacks Rank #2 (Buy).
CST Brands Inc.
) has an Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).
CST BRANDS INC (CST): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
NEWELL RUBBERMD (NWL): Free Stock Analysis
VITAMIN SHOPPE (VSI): Free Stock Analysis
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