How Newell Brands Recent Divestitures And Deleveraging Are Paying Off

Newell Brands (NASDAQ: NWL) produces consumer and commercial products that include Rubbermaid storage products, Coleman outdoor products, writing products, and glues among others. The company has seen its stock rally by close to 30% over the quarter, trading at about $19 currently. There have been multiple factors driving the company’s performance, including stronger than expected earnings over Q2 2019 (and Q1), which indicates that the company’s recent restructuring is paying off. Over the last year or so, the company has offloaded many non-core businesses (such as sporting goods maker Rawlings, packaging manufacturer Waddington, and Pure Fishing – a maker of fishing equipment) to trim its portfolio and cut costs. Moreover, the asset sales have helped the company prune down its debt, which stood at about $6.7 billion at the end of June, down from close to $11 billion two years ago. Below, we take a look at some of the key trends that drove the company’s financials over the last few years and what the outlook could be like.

View interactive dashboard analysis on What’s Been Driving The Rally In Newell Brands’ Stock

How does Newell Brands’ Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?

Total Revenues for Newell Brands decreased from $9.55 Bil in 2017 to $8.63 Bil in 2018; a decrease of -9.64%.

This compares with Total Revenues growth of:

• 3.29% in 2015 compared to 2014
• 55.2% in 2016 compared to 2015, driven by the acquisition of Jarden, another consumer products company.
• 4.04% in 2017 compared to 2016

We expect Total Revenues growth to be 6.6% in 2019.

How does Newell Brands’ Total Expense in 2018 compare with that in prior periods and what’s the forecast?

Total Expense for Newell Brands substantially increased from $8.96 Bil in 2017 to $16.9 Bil in 2018 on account of significant impairment charges related to its Food and Appliances and Home and Outdoor Living segments. This marked an increase of 88.6%.

This compares with Total Expense growth of:

• 5.95% in 2015 compared to 2014
• 64.3% in 2016 compared to 2015
• -2.21% in 2017 compared to 2016

We expect Total Expense growth to be 3.54% in 2019.

How does Newell Brands’ EBT in 2018 compare with that in prior periods and what’s the forecast?

EBT for Newell Brands decreased dramatically, from $592 Mil in 2017 to -$8.27 Bil in 2018, on account of the impairment charges.

We expect EBT to improve to $0.8 billion in 2019.

How do Newell Brands’ Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?

For more information on Newell Brands’s Net Income and EPS, view our interactive dashboard analysis.

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