Newell Brands misses by $0.06, reports revs in-line; cuts FY17 guidance; announces $1 bln share repurchase
- Reports Q3 (Sep) earnings of $0.86 per share, excluding non-recurring items, $0.06 worse thanthe Capital IQ Consensus of $0.92; revenues fell 7.0% year/year to $3.68 bln vs the $3.71 bln Capital IQ Consensus, reflecting a 770 basis point net negative impact from acquisitions and divestitures. Core sales grew 0.4 percent. The Live, Learn, Work and Play segments delivered positive core sales growth. Reported gross margin was 34.5 percent compared with 32.2 percent in the prior year, driven by synergies and cost savings and the absence of the inventory step-up charge recorded in the prior year related to the acquisition of the Jarden business, partially offset by increased commodity cost inflation and negative product mix. Normalized gross margin was 35.0 percent compared with 36.0 percent in the prior year, as synergies and cost savings were more than offset by increased commodity cost inflation and negative mix.
- Co issues downside guidance for FY17, lowers EPS to $2.80-2.85 from $3.00-3.20, excluding non-recurring items, vs. $3.00 Capital IQ Consensus; lowers FY17 revs to $14.7-14.8 bln from $14.8-15.0 vs. $14.91 bln Capital IQ Consensus Estimate; core sales to +1.5-2.0%.
- Announced Board approval of a three-year $1 billion share repurchase authorization.
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