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Newell Brands (NWL) Q4 Earnings: A Surprise in Store?

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Newell Brands Inc.NWL is slated to report fourth-quarter 2016 results on Feb 6, 2017, before the market opens. Last quarter, the company delivered a positive earnings surprise of 6.9%.

In fact, the company has outperformed the Zacks Consensus Estimate in 26 out of the past 28 quarters, with an average beat of 6.2% in the trailing four quarters. Let's see how things are shaping up for this announcement.

Newell Brands Inc. Price and EPS Surprise

Newell Brands Inc. Price and EPS Surprise | Newell Brands Inc. Quote

Factors Influencing This Quarter

Newell's superb earnings history reflects the splendid performance of its brand, its latest Growth Game Plan, ongoing Project Renewal Program and solid acquisitions. Riding on these factors, the company's shares have risen 18.3% in the past one year, outperforming the Zacks categorized Consumer Products - Miscellaneous Staples industry, which grew only 2.9%.

Newell has been gaining from its efforts like solidifying portfolio by investing in key segments, and exiting underperforming operations. Evidently, Newell recently revealed plans to sell its Rubbermaid and few other brands and completed the Woodwick buy. Moreover, with its Project Renewal Program on track, the company is set to generate its targeted cost savings, which should boost earnings and fuel growth.

However, significant global presence exposes the company to currency headwinds, posing threats. Further, macroeconomic uncertainty and volatile consumer behavior remain concerns. So let's see whether Newell can keep its spectacular track record in place this time around too.

Earnings Whispers

Our proven model does not conclusively show that Newell is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:

Zacks ESP: Newell currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 80 cents. You may uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Newell's Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company's ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Tractor Supply Company TSCO , slated to release earnings on Feb 1, 2017, currently has an Earnings ESP of +1.09% and a Zacks Rank #3.

Campbell Soup Company CPB , expected to release earnings on Feb 23, 2017, currently has an Earnings ESP of +1.15% and a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Dollar Tree Inc. DLTR , expected to release earnings on Mar 7, 2017, currently has an Earnings ESP of +0.75% and a Zacks Rank #2.

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Newell Brands Inc. (NWL): Free Stock Analysis Report

Campbell Soup Company (CPB): Free Stock Analysis Report

Dollar Tree, Inc. (DLTR): Free Stock Analysis Report

Tractor Supply Company (TSCO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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