Newell Rubbermaid Inc. – Value – Zacks Rank Buy
Source: http://www.zacks.com/commentary/11884/Newell+Rubbermaid+Inc.+-+Value+-+Zacks+Rank+BuyPosted on Thursday, August 20th, 2009 | In Market Commentary, Stocks to Watch
Newell Rubbermaid Inc. (NWL) recently declared a quarterly dividend of 5 cents per share, which translates into an industry-leading yield of 1.5%. The company also recently reported second-quarter earnings per share of 47 cents, beating the Zacks Consensus Estimate by 34%.
Company Description
Newell Rubbermaid manufactures many well-known consumer products under the brands Rubbermaid, Sharpie, Graco, Calphalon, Levolor, Waterman, and Goody, to name just a few. The company is divided into three segments: Home & Family; Office Products; and Tools, Hardware & Commercial Products.
Newell’s brands are widespread, with more than 90% of all U.S. households use at least one of the company’s products. Newell has sales in more than 90 countries.
Solid Income
The company recently declared a quarterly dividend of 5 cents per share, noting that it is payable September 15 to shareholders of record at the close of business on August 31.
Newell Rubbermaid’s dividend yield stands at an industry-leading 1.5%.
Strong Results
The company also recently reported second-quarter earnings per share of 47 cents, beating the Zacks Consensus Estimate by 34%. Net sales dropped from last year’s $1.83 billion to $1.50 billion.
Management said that while conditions remained challenging during the quarter, earnings came in above expectations.
Bullish Forecasts
Newell hiked its full-year earnings guidance to a range of $1.15 to $1.30 per share.
The Zacks Consensus Estimate for 2009 earnings stands at $1.25 per share, up from last month’s $1.14. For the following year, the Zacks Consensus Estimate of $1.42 per share climbed from $1.28 over the past month.
Value Fundamentals
Newell Rubbermaid is a Zacks #1 Rank (Strong Buy) stock. It has a forward P/E of 10.86 and a price-to-book ratio of 2.12. The company also has a solid return on equity (ROE) of 17.46%.
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 About Alex Kolb (http://www.zacks.com/)
Alex Kolb is an Editor at Zacks Investment Research. |
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