Newell Rubbermaid Inc. Earnings Cheat Sheet: Profit Increases Again

S&P 500 (NYSE:SPY) component Newell Rubbermaid Inc. (NYSE:NWL) reported net income above Wall Street’s expectations for the second quarter. Newell Rubbermaid Inc. markets consumer and commercial products, including housewares, hardware and home furnishings.

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Newell Rubbermaid Earnings Cheat Sheet for the Second Quarter

Results: Net income for Newell Rubbermaid Inc. rose to $146.7 million (49 cents per share) vs. $130.4 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 12.5% from the year earlier quarter.

Revenue: Rose 5.1% to $1.57 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NWL reported adjusted net income of 46 cents per share. By that measure, the company beat the mean estimate of 42 cents per share. Analysts were expecting revenue of $1.55 billion.

Quoting Management: “Overall our second quarter performance was in line with the guidance we communicated in early June,” said Michael Polk, President and Chief Executive Officer. “We are experiencing good progress in many areas of the business. Our new product innovations are gaining traction in the marketplace, and our Latin America and Asia Pacific businesses continue to deliver strong growth. This underlying momentum is tempered by difficult U.S. and European economies and the ongoing challenges in the baby and parenting category. In this context we now expect to deliver core sales growth in the back half between three and five percent. This lower sales growth expectation will translate to full year normalized EPS in the range of $1.55 – $1.62 and operating cash flow between $520 and $560 million.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 29.6% and in the fourth quarter of the last fiscal year, the figure rose 24.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.

Gross margin shrank 564.2 percentage points to -524.9%. The contraction appeared to be driven by increased costs, which rose 981.4% from the year earlier quarter while revenue rose 5.1%.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 0.3% to $1.3 billion in the first quarter from the year earlier.

Competitors to Watch: Jarden Corporation (NYSE:JAH), The Female Health Company (NASDAQ:FHCO), The Procter & Gamble Co. (NYSE:PG), Fortune Brands, Inc. (NYSE:FO), Carlisle Companies, Inc. (NYSE:CSL), The Clorox Company (NYSE:CLX), and Condomi AG (NYSE:CAG).

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(Source: Xignite Financials)