Stock Earnings Report: Newell Brands Inc (NYSE:NWL)

ewell Brands Inc (NYSE:NWL) announced its first quarter 2016 financial results on April 29, 2016.

First Quarter 2016 Operating Results

Core sales grew 5.6 percent, with growth in all five segments and all four regions.

Net sales grew 4.0 percent to $1.31 billion compared with $1.26 billion in the prior year. Net sales benefited from a 240 basis point net contribution from acquisitions and planned and completed divestitures, but were adversely affected by a 230 basis point negative impact from foreign currency and a 170 basis point negative impact from the deconsolidation of Venezuelan operations as of December 31, 2015.

Normalized gross margin was 38.6 percent, a 20 basis point decline versus prior year, as the negative impact of foreign currency, mix from the deconsolidation of Venezuela, and mix from acquisitions was only partially offset by the benefits of productivity, input cost deflation and pricing.

Reported gross margin was 38.5 percent compared with 38.6 percent in the prior year.

First quarter normalized operating margin increased 100 basis points to 13.1 percent of sales, despite a 40 basis point increase in advertising and promotion investment. Normalized operating income increased 12.6 percent to $171.8 million compared with $152.6 million in the prior year.

Reported operating margin increased 170 basis points to 9.5 percent of sales. Operating income increased 27.7 percent to $125.4 million compared with $98.2 million in the prior year.

The normalized tax rate was 27.2 percent, unchanged from the prior year. The reported tax rate for the quarter was 21.9 percent, compared with 27.9 percent in the prior year.

Normalized net income increased 11.0 percent to $107.7 million compared with $97.0 million in the prior year. Normalized diluted earnings per share increased 11.1 percent to $0.40 compared with $0.36 in the prior year. The improvement in normalized diluted earnings per share was attributable to increased core sales, strong operating margin improvement as a result of reduced overhead expenses and the positive impact of fewer outstanding shares, which more than offset an increase in advertising and promotion support, negative foreign currency impact and the absence of income from Venezuelan operations.

Stock’s Performance

Newell Brands Inc (NYSE:NWL) shares traded during its most recent trading session in the range of $44.96 – $46.90. The stock has climbed 2.66% in the past week and soared 2.82% in the last 4 weeks, historically the stock illustrate that its six months performance stands at 5.14% while its year to date performance is at 3.83%.

The stock ended previous trading session in the green zone in a volatile trading. The stock closed up +2.12 points or 4.88% at $45.54 with 14.46 million shares getting traded, post opening the session at $45.89.

Technical Look of the Stock

Newell Brands Inc (NYSE:NWL)’s distance from 20 day simple moving average is 2.54% along with distance from 50 day simple moving average of 7.81% whereas its distance from 200 day simple moving average is 9.17%.

The company’s price to free cash flow for trailing twelve months is 82.65. Its quick ratio for most recent quarter is 0.90 along with current ratio for most recent quarter of 1.30. Total debt to equity ratio of the company for most recent quarter is 1.69 whereas long term debt to equity ratio for most recent quarter is 1.47. Return on Investment (ROI) for the company is 7.20%.

Market capitalization is one of the most important characteristics that helps the investor determine the returns and the risk in the share. Market capitalization (market cap) is the total dollar market value of all of a company’s outstanding shares. Market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share. The investment community uses this figure to determine a company’s size, as opposed to sales or total asset figures. Newell Brands Inc (NYSE:NWL) has a market cap of $12.47 billion and the number of outstanding shares have been calculated to be 268.07 million shares. In comparing the stock’s current level to its extended history, the stock hit highest price level of $50.90 on Dec 7, 2015 and the lowest level of $33.26 on Feb 11, 2016 during past 52 weeks.