HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11740
Location: Los Angeles, California
|
 Posted: Sat Jun 04, 2011 1:39 pm Post subject: Newell Rubbermaid (NWL) |
 |
|
Morningstar on NWL. Stock was down more than 11% yesterday:
| Quote: | | Newell Rubbermaid NWL lowered its 2011 outlook, putting our earnings per share estimate (which was previously below guidance) near the midpoint of the firm's revised range. The reduction was mainly due to lower-than-expected consumer spending and increased inflationary spending. We are not changing our fair value estimate. Newell lowered its expected range of growth by 1 percentage point, to 3%-4%, and reduced the range of gross margin expansion by about 15 basis points, to 40-60 basis points. The net result is that the midpoint of its normalized earnings per share guidance (now $1.60-$1.67) dropped by $0.05. Our full-year estimates already incorporated our expectations that consumer spending, especially in discretionary categories, would be pressured this year. In addition, we expected that inflation will continue to pressure margins as commodity hedges roll off throughout the year and companies will be constrained in their ability to raise pricing. We are maintaining our top-line growth estimate of just over 4% (which was the bottom of the firm's guidance) and our estimate for 20 basis points of gross margin expansion, which is still lower than current guidance. The firm also said second-quarter performance will be lower than current consensus, with earnings as much as 15% below expectations. We will continue monitor the firm's performance to ascertain whether we need to make any changes to our longer-term assumptions. |
|
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
