Newell Brands (NWL) Stock: Headed Up On Earnings

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Newell Brands Inc NWL Stock NewsNewell Brands Inc (NYSE: NWL) is climbing early on in the trading session this morning, and for good reason. The company reported its earnings for the third quarter, beating expectations. The company also raised its outlook for the full year. Today, we’ll talk about:

  • The financial results;
  • what we’re seeing from NWL stock as a result; and
  • what we’ll be watching for ahead.

NWL Climbs On Earnings

As mentioned above, Newell Brands is having an incredibly strong start to the trading session this morning after reporting earnings. The parent company to brands like Sharpie, Elmer’s and Graco did overwhelmingly well. Here’s what we saw from the report:

  • Profits – During the thirrd quarter, profits from NWL were nothing to shake a stick at. The company said that during the quarter, it generated a profit of $234.4 million, working out to $0.48 per share. That’s a massive climb from the $7.1 billion net loss or $15.10 loss per share reported in the last quarter. Exclusing non-recurring items, earnings came to $0.81 per share. Analysts were expecting that earnings would be around $0.65 per share.
  • Revenue – Revenue wasn’t quite as positive. During the quarter, analysts expected that the company would generate revenue of $2.35 billion. However, revenue actually came in at $2.28 billion.
  • Guidance – Finally, Guidance also proved to be a big hit. The company said that for the full 2018 year, it is expecting for earnings to come in the range between $2.55 per share and $2.75 per share. Previously, the company guided for $2.45 per share ot $2.65 per share. In terms of revenue, guidance remained unchanged at between $8.7 billion and $9 billion.




This Could Lead To A Short Squeeze

While NWL is climbing in the market as a result of earnings, the gains may just be the beginning. As of late, the stock has been falling dramatically, losing 38% over the last 3 months. At the same time, short interest has been growing, and right now, sits at more than 11% of the float. With the positive news, we’re weeing what could be the perfect recipe for a short squeeze that could send the stock screaming for the top.

What We’re Seeing From The Stock

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Newell Brands, the news proved to be overwhelmingly positive. After all, the company reported earnings well ahead of expectations, raised guidance, and is setting up for a short squeeze in the process. So, It’s not very surprising to see that investors are sending the stock upward in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:02), NWL is trading at $16.02 per share after a gain of $2.50 per share or 15.13% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on NWL. In particular, we’re interested in following the story surrounding the company’s continued growth and seeing if it can reach the high bar it has set for itself in the fourth quarter. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

1 COMMENT

  1. Harsco ended its merger with Brand Energy. Now, they should look to recover money from Brand’s ex-CEO and the ex-GE people he brought in with him.

    The CEO of Brand was negligent. He brought in his friends from GE and didn’t fire them no matter what. The ex-GE guy in Houston had to be shuffled all over the country because he was despised. He was called President of Business Development. He has the polish-looking last name and was sent to Houston from California in 2011. They had to keep him on the road all the time because he couldn’t get along with anyone. Can you imagine how much that cost the company? The ex-CEO also sent him around to meet with all kinds of companies even though he was extremely obnoxious. Can you imagine how many companies he scared away and how much money was lost due to that? The ex-CEO of Brand should be held liable for this.

    Watch out for ex-GE guys. They play politics and are a major problem in corporate America. Clayton, Dubilier, and Rice owns Brand Energy. Brand was ruined by ex-GE guys like the former CEO and the “President of Business Development” in Houston. Were they doing their fiduciary duty? Brand’s investors need to investigate the former executives and their spending immediately. Blackrock and other big names are investors in the bonds of Brand Energy.

    Some executives have moved to a company called Total Safety. That company can be investigated next. It’s owned by Littlejohn, the investment firm.

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