On Monday, Canaccord Genuity updated its outlook on Newell Rubbermaid (NASDAQ:NWL) shares, increasing the price target to $10 from the previous $9 while maintaining a Buy rating on the stock. This adjustment follows the company's recent first-quarter earnings report, which surpassed expectations on several financial metrics.
Newell Brands reported its Q1 2024 results before the market opened last Friday, delivering sales figures that modestly exceeded both Canaccord Genuity's estimates (CGe) and the consensus.
The company's Home & Commercial Solutions sector performed as expected, while its Learning & Development segment outperformed consensus estimates by approximately 6%. The Outdoor & Recreation division, on the other hand, did not meet expectations, falling short of the consensus by roughly 14%.
The adjusted earnings per share (EPS) for the quarter were at the breakeven point, which was significantly better than analysts' expectations of a $0.07 loss and Canaccord Genuity's estimate of a $0.02 loss. In response to these results, Canaccord Genuity has slightly raised its sales projections for the second quarter and the full year 2024.
Canaccord Genuity expressed increased confidence in the effectiveness of Newell Brands' new strategy. The firm anticipates that this strategy will contribute to a "beat & raise" year, potentially concluding a persistent cycle of downward estimate revisions that has characterized the company's recent performance.
According to the analyst's comments, the disappointing guidance provided in February had substantially lowered expectations, suggesting that the latest results may represent a turning point for the company.
InvestingPro Insights
In light of Canaccord Genuity's updated outlook on Newell Rubbermaid (NASDAQ:NWL), current InvestingPro data could provide additional context for investors. Over the last six months, NWL has seen an impressive price total return of 19.68%, indicating a strong medium-term performance. Even more recently, the year-to-date (YTD) price total return stands at 6.19%, reflecting a positive trend for the company in 2024 thus far. These metrics suggest that the stock has been gaining momentum, potentially aligning with Canaccord Genuity's optimistic view.
InvestingPro Tips highlight the importance of considering both recent performance and longer-term trends when evaluating a stock. With a 1-year price total return of 13.57%, NWL has shown resilience over a longer period, which may support the analyst's belief in the company's new strategy and its potential for a "beat & raise" year.
For investors intrigued by these insights, InvestingPro offers additional tips to further inform investment decisions. By using the exclusive coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access the full range of InvestingPro Tips, which currently includes 5 more tips related to companies like Newell Rubbermaid.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.