Newell Rubbermaid Earnings: Revenue FALLS After Four Straight Increases, Net Income DROPS

S&P 500 (NYSE:SPY) component Newell Rubbermaid Inc. (NYSE:NWL) reported its results for the second quarter. Newell Rubbermaid markets consumer and commercial products, including housewares, hardware, and home furnishings.

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Newell Rubbermaid Inc. Earnings Cheat Sheet

Results: Net income for Newell Rubbermaid Inc. fell to $111.8 million (38 cents per share) vs. $146.7 million (49 cents per share) a year earlier. This is a decline of 23.8% from the year-earlier quarter.

Revenue: Fell 3.6% to $1.52 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Newell Rubbermaid Inc. fell short of the mean analyst estimate of 45 cents per share. Analysts were expecting revenue of $1.52 billion.

Quoting Management: “Our solid second quarter results build on the momentum established in the first quarter, resulting in a good first half of 2012. During the first half, we reported 2.5 percent core sales growth, normalized operating margin expansion of 20 basis points, and normalized earnings per share increase of 8.1 percent,” said Michael Polk, Newell Rubbermaid’s President and CEO. “This performance was driven by strong core sales growth in our Professional and Baby & Parenting segments and double-digit core sales growth in emerging markets. We generated over $70 million more operating cash flow in the first half of 2012 than prior year, continued to improve our capital structure by initiating the refinancing of $437 million of convertible securities on more favorable terms, and returned $95 million to our shareholders in the form of dividends and share repurchases. We’re encouraged by the first half results, and we believe our portfolio is well positioned to meet our financial and strategic goals for the year.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 5.1%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 48 cents a share to 45 cents over the last ninety days. The average estimate for the fiscal year is now $1.67 per share, down from $1.68 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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