Newell Brands Inc. (NASDAQ: NWL) reported its financial results for the fiscal fourth quarter on Friday that topped Wall Street estimates. The company, however, gave weaker than expected guidance for the full year on Friday.
Newell Brands was reported about 7% down in premarket trading on Friday. Including the price action, the stock is now exchanging hands at £17.79 per share after recovering from a low of £7.63 per share in the last week of March 2020 when the COVID-19 crisis wreaked havoc on global businesses.
Newell Brands’ Q4 financial results versus analysts’ estimates
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Newell Brands said that its net income in the fourth quarter came in at £91.85 million that translates to 21.70 pence per share. In the comparable quarter of last year, its net income stood at a sharply higher £574.23 million or £1.35 per share.
On an adjusted basis, the owner of prominent brands, including Rubbermaid, Papermate, and Sharpie, earned 40.50 pence per share. Newell Brands reported £1.94 billion of sales in the recent quarter that represents a 2.5% year over year increase.
According to FactSet, experts had forecast the company to post £1.89 billion of sales in Q4. Their estimate for adjusted per-share earnings was capped at a lower 34.71 pence. In separate news from the U.S., the power and energy company, Dominion Energy Inc., said on Friday that its revenue came in lower than expected in the fiscal fourth quarter.
CEO Ravi Saligram said on Friday that the company’s food, cookware, and commercial and appliances segments showed resilience in recent months, resulting in better-than-expected financial performance amidst the ongoing Coronavirus pandemic that has so far infected more than 28 million people in the United States and caused a little under half a million deaths.
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Newell Brands’ guidance for fiscal 2021
For fiscal 2021, the American worldwide manufacturer now forecasts its adjusted per-share earnings to fall in the range of £1.12 to £1.19. Experts, on the other hand, are calling for an even higher £1.23 of full-year adjusted EPS for Newell Brands.
Newell’s report comes a day after American diversified multinational mass media and entertainment conglomerate, the Walt Disney Company, published its earnings report for the fiscal first quarter.
Newell Brands performed slightly upbeat in the stock market last year with an annual gain of more than 10%. At the time of writing, the Hoboken-based company has a market capitalisation of £7.39 billion.