Newell Rubbermaid Posts Higher Q3 Profit on Lower Sales; Outlook Boosted (NWL)

Created by Dividend.com

Branded consumer products maker Newell Rubbermaid Inc. (NWL) said Wednesday that its third quarter profit jumped 54% from last year, even as sales declined, helped by cost-cutting measures.

The Atlanta-based company reported third quarter net income of $85.5 million, or 28 cents per share, compared with $55.6 million, or 20 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 38 cents per share.

Sales fell 18% from last year, however, to $1.45 billion.

On average, Wall Street analysts expected a lower profit of 35 cents per share, but on higher revenue of $1.47 billion.

Looking ahead, the company raised its full-year 2009 earnings outlook to a range of $1.27 to $1.32 per share, up from prior guidance for $1.15 to $1.30. Analysts currently expect $1.28 per share for the year.

As for the current fourth quarter, the company predicted a profit of 23 to 28 cents per share, while analysts see 27 cents per share.

Newell Rubbermaid shares were mostly flat in premarket trading Wednesday.

The Bottom Line
We had removed shares of NWL last July 9, when the stock was trading at $16.16. The company has a 1.35% dividend yield, based on last night’s closing stock price of $14.82. The stock has technical support near all-time technical lows in the $10-$12 price area. If the shares can continue its recent upswing, we see overhead resistance around the $16 price level. We would remain on the sidelines for now.

Newell Rubbermaid Inc. (NWL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.