Newell Rubbermaid Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Newell Rubbermaid (NYSE:NWL) will unveil its latest earnings on Friday, July 27, 2012. Newell Rubbermaid markets consumer and commercial products, including housewares, hardware, and home furnishings.

Newell Rubbermaid Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 45 cents per share, a decline of 2.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 46 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 45 cents during the last month. For the year, analysts are projecting profit of $1.67 per share, a rise of 5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of 33 cents per share against a mean estimate of profit of 31 cents per share.

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A Look Back: In the first quarter, profit rose 4.8% to $79.3 million (27 cents a share) from $75.7 million (25 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.3% to $1.33 billion from $1.3 billion.

Stock Price Performance: Between May 24, 2012 and July 23, 2012, the stock price had fallen 83 cents (-4.5%), from $18.39 to $17.56. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 7.9% (+$1.28) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 12.1% (-$1.97) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 3.2% in revenue from the year-earlier quarter to $1.52 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.1% in the second quarter of the last fiscal year, 4.2% in the third quarter of the last fiscal year and 1.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.33 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.29 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 6.7% to $2.29 billion while liabilities rose by 4% to $1.73 billion.

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

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