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Here's How Newell (NWL) is Placed Just Ahead of Q1 Earnings

Newell Brands Inc. NWL is expected to witness a year-over-year decline in the top and bottom lines, when it reports first-quarter 2024 results on Apr 26, before the opening bell. For quarterly revenues, the Zacks Consensus Estimate is pegged at $1.64 billion, indicating a decline of 8.9% from the figure reported in the year-ago quarter.

The consensus estimate for the first-quarter bottom line is pegged at a loss of 7 cents per share, which is wider than a loss of 6 cents per share witnessed in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days.

In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 29.4%. Its bottom line beat the consensus estimate by 33.4%, on average, in the trailing four quarters.

Key Factors to Note

Newell has been witnessing a challenging macroeconomic environment and elevated levels of inflation that have led to muted demand for discretionary and durable products. In addition, normalization in category trends, tight inventory management and the unfavorable impact of the bankruptcy of Bed Bath & Beyond acted as deterrents. These have been hurting the company’s top-line performance for a while.

In its last earnings call, management issued soft guidance for the first quarter of 2024. For the to-be-reported quarter, the company had anticipated net sales to dip 8-10%, with a core sales decline of 6-8%, and envisioned a normalized operating margin of 2.4-3.2% and a loss of 5-9 cents per share. Our model suggests a decline of 8.9% year over year in sales for the first quarter.

On the flip side, Newell’s productivity program and pricing actions have been encouraging. The company has been evaluating opportunities to optimize the category mix within each business unit. It is focused on leveraging its e-commerce capabilities as consumers have been increasingly shifting to the online platform. Its buy online and pick up in stores, and ship from store services have been doing well.

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’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Newell currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

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.

Vital Farms VITL currently has an Earnings ESP of +5.75% and a Zacks Rank of 2. VITL is anticipated to register top and bottom-line growth when it reports first-quarter 2024 results. The Zacks Consensus Estimate for Vital Farms’ quarterly revenues is pegged at $137 million, indicating growth of 15% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Vital Farms’ earnings has moved up a couple of cents in the past 30 days to 22 cents per share. The consensus estimate suggests 37.5% growth from the year-ago quarter’s reported figure. VITL has delivered an earnings beat of 155.4%, on average, in the trailing four quarters.

Church & Dwight Co. CHD has an Earnings ESP of +2.37% and a Zacks Rank of 2, at present. CHD is likely to register top and bottom-line growth when it releases first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.49 billion, which suggests growth of 4.3% from the figure reported in the year-ago quarter.

The consensus estimate for Church & Dwight’s quarterly earnings has remained unchanged in the past 30 days at 86 cents per share, suggesting growth of 1.2% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 9.7%, on average, in the trailing four quarters.

Monster Beverage MNST has an Earnings ESP of +0.44% and a Zacks Rank of 3, at present. MNST is likely to register top and bottom-line growth when it releases first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.93 billion, implying growth of 13.3% from that reported in the year-ago quarter.

The consensus estimate for Monster Beverage’s quarterly earnings has remained unchanged in the past 30 days at 44 cents per share, indicating growth of 15.8% from the year-ago quarter’s reported number. MNST has a trailing four-quarter average earnings surprise of 2.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Monster Beverage Corporation (MNST) : Free Stock Analysis Report

Vital Farms, Inc. (VITL) : Free Stock Analysis Report

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