Moreover, intense competition from other established manufacturers coupled with a debt-heavy balance sheet and exposure to adverse foreign currency translations severely undermine the company’s future growth prospects and profitability.

Consequently, our recommendation for Newell Rubbermaid is Underperform as we anticipate it to perform well below the broader market.

Zacks Investment Research

(NWL) Newell Rubbermaid – Bear of the Day

Moreover, intense competition from other established manufacturers, coupled with a debt-heavy balance sheet and exposure to adverse foreign currency translations, severely undermine the company’s future growth prospects and profitability.

Consequently, our recommendation for Newell Rubbermaid is Underperform as we anticipate it to perform well below the broader market.

Zacks Investment Research

(NWL) Newell Rubbermaid – Bear of the Day

There were no estimate revisions in either direction over the last 7 days for both the quarterly and fiscal estimates. Over the last 30 days, one out of the 14 analysts covering the stock lowered estimates for full year 2010. Currently, the Zacks Consensus Estimate for 2010 is $1.46 per share, up 11.16% year-over-year.

With respect to earnings surprises, the stock has fluctuated substantially over the last four quarters in the range of approximately 9%-150%, with the average at 58%. This implies that Newell has beaten the Zacks Consensus Estimate by 58% on an average in the last four quarters. However, our long-term recommendation for Newell is Neutral as we anticipate it to perform in line with the broader market.

Despite the challenging macroeconomic environment, Newell grew market share in most of its businesses in 2009, significantly improved both its gross and operating margins, and lowered working capital to generate increased operating cash flow. With the stabilization of sales in most of the markets and improved margin performance, Newell ramped up its strategic spending in the fourth quarter to drive growth in 2010.

During the quarter, net sales declined 2% to $1.42 billion, primarily due to product line exits partially offset by the positive impact of foreign currency translation. Net sales for full year 2009 decreased 14% to $5.58 billion largely due to the exit of certain product lines and the negative impact of foreign currency translation, partially offset by accretive acquisitions.

Gross margin for the quarter was 37.0%, up 700 basis points from the year-earlier quarter reflecting productivity gains and improved pricing and lower input costs, which more than offset the decline in sales. For full year 2009, gross margin increased 36.7%, up 390 basis points compared to 2008.

During the quarter, Newell generated an operating cash flow of $187.1 million, driven by increased earnings and improved working capital management. For full year 2009, the company generated an operating cash flow of $602.8 million compared to $454.9 million in 2008. At year-end 2009, Newell had cash and cash equivalents of $278.3 million and total long-term debt of over $2.0 billion.

Management expects fiscal year 2010 core sales to increase in the low single digits, with gross margin anticipated to increase 75 to 100 basis points. Recurring earnings for the full fiscal year are expected in the range of $1.35 to $1.45 per share, while operating cash flow is projected to be approximately $500 million.

Zacks Investment Research

(NWL) Newell Rubbermaid Reports Earnings In-Line

Company Description

Jarden manufactures niche consumer products in three main business segments: Branded Consumables, Consumer Solutions, and Outdoor Solutions.

Some of the company’s famous brands include Rawlings, Crock-Pot, Mr. Coffee, Seal-a-Meal, and Pine Mountain.

Jarden Surprised By 14.81% in the Third Quarter

Jarden reported third quarter results on Oct 28 that beat the Zacks Consensus by 12 cents. Earnings per share were 93 cents compared to the consensus of 81 cents.

Sales fell 6.7% to $1.4 billion from $1.5 billion in the year ago period. Most of the sales weakness was due to the global recession and general retail weakness however about $44 million of the $104 million decrease was due to currency exchange fluctuations.

The company saw some positive momentum in its businesses. It expects to finish 2009 ahead of its earlier stated goals with revenue of about $5 billion. The company is optimistic about 2010. It anticipates organic sales growth next year.

Zacks Consensus Estimates Jump

Analysts liked what they heard in the third quarter. Fourth quarter Zacks Consensus Estimates are up 4 cents to 76 cents in the last month.

All 7 covering analysts raised 2009 estimates in the last month by an average of 14 cents to $2.54 per share.

Analysts are bullish about 2010. They expect 10.08% earnings growth for the year. The 2010 Zacks Consensus Estimate rose 5% to $2.79 from $2.66 in the last 30 days.

Value Fundamentals

Jarden is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of just 1.39. The company also has an outstanding 5-year average return on equity of 16.08%. Jarden also rewards shareholders with a dividend currently paying a 1.10% yield.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

Zacks Investment Research

(JAH) Jarden Corporation – Surprised By 14.81% in the Third Quarter

On a reported basis including one-time items, quarterly earnings came in at 28 cents, up 40% from 20 cents reported in the prior-year quarter.

Management now expects fiscal year 2009 earnings in the range of $1.27 to $1.32 per share, as against $1.15 to $1.30 forecasted earlier. For the fourth quarter, earnings are expected between 23 cents and 28 cents a share.

Despite a double-digit fall of 17.7% in revenue to $1,449 million, Newell’s bottom line benefited from the exit of certain line of products, lower cost of products sold and effective cost management. Consequently, Newell’s gross margin expanded 480 basis points to 37.4%. However, the planned exit from less profitable products adversely affected revenue by 6%.

Management expects fiscal year 2009 revenue to decline in the range of 10% to 15%, with planned product exits being responsible for a 4% to 6% decline in revenue. For the fourth quarter, revenue is expected to fall between 2% and 4% with planned product line exits expected to negatively impact revenue by 3% to 5%.

During the quarter, Newell generated operating cash flow of $327.7 million that surpassed the company’s guidance of $200 million to $250 million. Management expects operating cash flow to be approximately $135 million and $550 million during the fourth quarter and fiscal year 2009, respectively.

Newell ended the quarter with cash and cash equivalents of $313 million and total long-term debt of 2,592.9 million, representing debt-to-capitalization ratio of 58.5%. The company generated free cash flow of $290.7 million during the quarter.

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(NWL) Newell Rubbermaid Tops Consensus Estimates

The company would relocate its manufacturing and distribution activities to Mexico, and shift the administrative jobs to other existing facilities in the U.S. Newell plans to utilize the excess capacity in its office products facility in Mexicali, Mexico, for manufacturing functions.

The restructuring would increase the profitability of the company through improved efficiencies. The move was further influenced by the continued economic downturn in the U.S. Newell is expected to cease operations in the plant, formerly a manufacturing hub for the world-famous Parker Pen, by the end of the first quarter of 2010.

The closure would result in a lay-off of 153 employees. Newell would offer transition services to these employees, including assistance for resume preparation and for honing interview skills. The company also plans to work in association with state and federal officials to provide additional transition benefits and separation pay benefits based on seniority and experience.

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(NWL) Newell is Closing its Janesville Plant

Company Description

Newell Rubbermaid manufactures many well-known consumer products under the brands Rubbermaid, Sharpie, Graco, Calphalon, Levolor, Waterman, and Goody, to name just a few. The company is divided into three segments: Home & Family; Office Products; and Tools, Hardware & Commercial Products.

Newell’s brands are widespread, with more than 90% of all U.S. households use at least one of the company’s products. Newell has sales in more than 90 countries.

Solid Income

The company recently declared a quarterly dividend of 5 cents per share, noting that it is payable September 15 to shareholders of record at the close of business on August 31.

Newell Rubbermaid’s dividend yield stands at an industry-leading 1.5%.

Strong Results

The company also recently reported second-quarter earnings per share of 47 cents, beating the Zacks Consensus Estimate by 34%. Net sales dropped from last year’s $1.83 billion to $1.50 billion.

Management said that while conditions remained challenging during the quarter, earnings came in above expectations.

Bullish Forecasts

Newell hiked its full-year earnings guidance to a range of $1.15 to $1.30 per share.

The Zacks Consensus Estimate for 2009 earnings stands at $1.25 per share, up from last month’s $1.14. For the following year, the Zacks Consensus Estimate of $1.42 per share climbed from $1.28 over the past month.

Value Fundamentals

Newell Rubbermaid is a Zacks #1 Rank (Strong Buy) stock. It has a forward P/E of 10.86 and a price-to-book ratio of 2.12. The company also has a solid return on equity (ROE) of 17.46%.

Zacks Investment Research
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(NWL) Newell Rubbermaid Inc. – earnings per share beat the consensus estimate by 34%

Company Description

Newell Rubbermaid Inc. designs, manufactures and distributes consumer and commercial products like office products, tools and home cleaning products worldwide. The company was founded in 1903 and has a market cap of $3.74 billion.

Shares of NWL recently broke above a key level of short-term resistance on strong second-quarter results, reported on July 30, and rising estimates,

Second-Quarter Results

Although sales were down from last year, the company produced solid earnings, coming in at 47 cents per share, 12 cents ahead of the Zacks Consensus Estimate.

Newell has produced consistent earnings over the last year in a very tough environment, surprising in each of the last four quarters by an average of 7 cents, or 57%.

Margin Expansion

With sales down for the quarter, the company’s profits were helped by an expansion of its gross margin, up 3% from last year on lower input costs and exiting certain product lines.

Guidance Raised

During the earnings release, Newell went ahead and raised its full-year earnings guidance to between $1.15 and $1.30 per share, up from the previous range of $1 to $1.25.

Analysts are bullish on the company’s longer term prospects as well, with the next-year estimate pegged at $1.40, an 11% growth projection.

Valuation

Based on the current-year estimate, this stock has a P/E multiple of 10.6X, a sharp discount to the S&P 500, trading with a multiple of 17X.

The Chart

Shares of NWL are up big over the last 4 months after bottoming out just above $4 in early March. More recently, shares broke above a key level of short-term resistance at $12.50 and surged just a pinch shy of $14. Take a look at the nice move below.

Zacks Investment Research
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(NWL) Newell Rubbermaid Inc. – 47 cents per share, 12 cents ahead of the Zacks Consensus Estimate

Company Description

Newell Rubbermaid manufactures many well-known consumer products under the brands Rubbermaid, Sharpie, Graco, Calphalon, Levolor, Waterman, and Goody, to name just a few. The company is divided into three segments: Home & Family; Office Products; and Tools, Hardware & Commercial Products.

Newell’s brands are widespread, with more than 90% of all U.S. households use at least one of the company’s products. Newell has sales in more than 90 countries.

Cost Cutting Boosts First Quarter

On Apr 30, Newell Rubbermaid reported first-quarter 2009 results which surprised on analysts’ estimates by 150%. Adjusted earnings per share were 20 cents while analysts expected just 8 cents. EPS was 26 cents in the year ago period.

Like other consumer-driven companies, sales fell by 16% year over year to $1.2 billion from $1.43 billion. Core sales declined by 10%, with 50% of that fueled by tighter inventory management by customers and 50% driven by lower consumer spending.

The company responded to the change in market conditions by aggressively cutting costs with the result that Newell beat its own projected guidance for the quarter.

Full Year Guidance Affirmed

Given the results of the first quarter, the company reaffirmed its prior full year guidance of $1.00 to $1.25 per share with a net sales decline of 10% to 15%.

For the second quarter, Newell expects net sales to fall about 20% as customers maintain lower inventories and consumer spending continues to be weak. Earnings per share are forecast to be in the range of 30 to 37 cents.

Consensus Estimates Rise

After Newell easily beat first quarter estimates and reaffirmed full year guidance, covering analysts moved to adjust estimates. For the full year, estimates climbed by 13% to $1.13, which is in the middle of the company’s guidance range.

Second-quarter estimates are up 1 cent in the last 7 days to 35 cents.

Value Fundamentals

Newell Rubbermaid is a Zacks #1 Rank (strong buy) stock. It has a forward P/E of 9.01 and a price-to-book ratio of 1.95. The company also has a stellar 5-year average return on equity (ROE) of 23.29%. Additionally, NWL pays a dividend, with a current yield of 1.80%.

Zacks Investment Research
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(NWL) Newell Rubbermaid, Inc. – Value – Zacks Rank Buy