NEWELL BRANDS Reports Fourth Quarter Earnings Results for Fiscal Year 2022
March 8, 2023
Earnings Overview
On February 10, 2023, NEWELL BRANDS ($NASDAQ:NWL) reported its earnings results for the fourth quarter of fiscal year 2022, which ended on December 31, 2022. Revenue for the quarter totaled USD -249.0 million, a drop of 359.4% compared to the same quarter in the prior year. Net income was USD 2285.0 million, a decrease of 18.5% from the same period in 2021.
Transcripts Simplified
Fourth quarter results were in line with expectations. Core sales declined 3.4% due to a tough operating environment and slowing consumer demand. The team drove sequentially stronger cash flow performance. Brands such as Rubbermaid, Sharpie, Paper Mate and Ball showed strength. The company made progress on innovation, operational excellence, and complexity reduction.
Newell Creative Kitchen was launched, which has seen a fourfold increase in engagement. Supply chain transformation and automation is ongoing. SKUs have been reduced from 36,000 in 2021 to 28,000 in 2022. Revenue per SKU has tripled since 2018.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newell Brands. More…
| Total Revenues | Net Income | Net Margin |
| 9.46k | 197 | 5.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newell Brands. More…
| Operations | Investing | Financing |
| -272 | 343 | -232 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newell Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.26k | 9.74k | 9.13 |
Key Ratios Snapshot
Some of the financial key ratios for Newell Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.9% | 1.4% | 4.1% |
| FCF Margin | ROE | ROA |
| -6.2% | 6.7% | 1.8% |
Share Price
The company’s stock opened at $13.9 and closed at $14.8, up 1.2% from the previous closing price of $14.6. This increase in the stock price marks a positive outlook on the performance of NEWELL BRANDS going forward. The company also reported an increase in operating income for the quarter, indicating improved profitability for the company.
The positive news from NEWELL BRANDS on Friday has boosted investor confidence in the company and created renewed interest in its stock. Analysts expect that the company will continue to perform well in the future, leading to further increases in its stock price. Live Quote…
Analysis
At GoodWhale, we conducted an analysis of NEWELL BRANDS‘s wellbeing. Our Risk Rating results concluded that NEWELL BRANDS is a medium risk investment in terms of financial and business aspects. After delving deeper into the company’s financials, we have identified two risk warnings in its income statement and balance sheet. To get the full details of our findings, we highly recommend registering on our website – goodwhale.com. Our comprehensive research will help you make the right decisions when it comes to investing in NEWELL BRANDS. More…
Peers
Newell Brands Inc. competes in the consumer goods market against Beiersdorf AG, Spectrum Brands Holdings Inc, and Winning Brands Corp. Newell Brands Inc. has a diversified portfolio of products that span many categories including housewares, hardware, and office products. The company has a long history dating back to 1898, when it was founded as the Newell Rubbermaid Company.
– Beiersdorf AG ($OTCPK:BDRFY)
Beiersdorf AG is a German skin care company that owns several popular brands, including Nivea, La Prairie, and Eucerin. The company has a market cap of 21.82 billion as of 2022 and a return on equity of 9.31%. Beiersdorf AG is a publicly traded company listed on the Frankfurt Stock Exchange. The company has its headquarters in Hamburg, Germany.
– Spectrum Brands Holdings Inc ($NYSE:SPB)
Spectrum Brands Holdings Inc. is a diversified consumer products company that manufactures, markets, and distributes a wide variety of branded consumer products. The company operates in three segments: Home & Garden, Pet, and Hardware & Home Improvement. The Home & Garden segment produces and markets a variety of consumer products for the home, including small appliances, home fragrance products, and pest control products. The Pet segment produces and markets a variety of pet food, pet supplies, and pet care products. The Hardware & Home Improvement segment produces and markets a variety of hardware and home improvement products, including power tools, hand tools, and plumbing and electrical supplies.
Summary
Investors in NEWELL BRANDS should take note of the company’s fourth quarter fiscal year 2022 earnings results. Total revenue for the quarter fell significantly by 359.4% year-over-year, while net income decreased by 18.5%. This indicates that despite a challenging quarter, the company was able to remain profitable, but with a much lower margin than in the previous year. Investors may want to consider the potential for future earnings growth and to carefully monitor the company’s financial position going forward.
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