NASDAQ$NWL

Newell Brands Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Newell Brands' Q3 2020 results were announced, featuring net sales growth and significant operating profit and margin expansion.

Newell Brands reported strong third quarter results with net sales increasing by 5.1% and core sales growing by 7.2%. The company saw improvement in operating margin and cash flow generation. They also reinstituted guidance for 2020.

  • Net sales increased by 5.1% to $2.7 billion.
  • Core sales grew by 7.2% with growth across most business units and regions.
  • Reported operating margin was 13.4%, a significant increase from the prior year's negative 33.4%.
  • Operating cash flow for the year to date was $820 million, driven by improvements in working capital.

Headline financials

Total Revenue

$2.7B

Previous: $2.45B+10.1%
EPS (adj)

$0.84

Previous: $0.73+15.1%
Normalized Op Margin

14.9%

Previous: 12.7%+17.3%
Free Cash Flow

$304M

Previous: -$626M+148.6%
Net Income

$304M

Previous: -$626M+148.6%
Operating Income

$363M

Previous: -$635M+157.2%
Gross Profit

$914M

Previous: $811M+12.7%
Cash & Equivalents

$858M

Previous: $465M+84.4%
Total Assets

$14.7B

Previous: $16B-8.1%
Stock-Based Comp

$10M

Previous: $9M+11.1%

Revenue & EPS history

Newell Brands · Revenue · Quarterly

$2.7B

Q3 2020+10.1%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Newell Brands · $1.11B total across 2 segments · Q3 2020

  • Learning & Dev
    $728M
  • Outdoor & Rec
    $383M

Forward guidance

The company reinstituted its practice of providing guidance with following outlook for full year and fourth quarter 2020.

Tailwinds

  • Full Year 2020 Net Sales: $9.2 to $9.3 billion
  • Full Year 2020 Core Sales: Low single digit decline
  • Full Year 2020 Normalized Operating Margin: Flat to 20 bps contraction to 10.6% to 10.8%
  • Full Year 2020 Normalized EPS: $1.63 to $1.69
  • Full Year 2020 Operating Cash Flow: $1.1 to $1.2 billion

Headwinds

  • Q4 2020 Net Sales: $2.5 to $2.6 billion
  • Q4 2020 Core Sales: Flat to low single digit growth
  • Q4 2020 Normalized Operating Margin: 80 to 140 bps contraction to 9.9% to 10.5%
  • Q4 2020 Normalized EPS: $0.40 to $0.46

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-3.0%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+38.8%

Q2 2024

Best reaction

-31.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%+13.2%-16.9%
Q4 2025+2.4%-0.2%-6.2%
Q3 2025-31.3%-31.8%-22.7%
Q1 2025-7.5%-1.4%+2.5%
Q4 2024-26.4%-26.8%-30.3%
Q3 2024+32.7%+24.9%+27.0%
Q2 2024+38.8%+35.5%+16.7%
Q1 2024+16.0%+11.7%+13.3%
Q4 2023-13.7%-9.9%-7.0%
Q3 2023-5.1%-10.4%+1.4%
Q2 2023+8.9%+6.9%+0.0%
Q1 2023-9.0%-15.7%-26.5%
Q4 2022+1.1%+2.8%-16.2%
Q3 2022-11.9%-17.9%-14.8%
Q2 2022-2.0%-4.3%-5.5%
Q1 2022-2.6%+1.1%-5.0%
Q4 2021+13.5%+18.4%-1.7%
Q3 2021+8.2%+10.7%+3.2%
Q2 2021-8.7%-8.8%-6.2%
Q1 2021+3.0%+5.1%+6.3%
Q4 2020-8.7%-7.6%-2.5%
Q3 2020+12.4%+12.2%+25.3%
Q2 2020-7.5%-5.4%-8.5%
Q1 2020-10.7%-15.8%-5.3%
Q4 2019+2.6%+0.2%-32.1%
Q3 2019+10.0%+6.1%+1.3%
Q2 2019+12.4%+20.1%+23.6%
Q1 2019+9.1%+6.0%-8.4%
Q4 2018-21.6%-20.9%-28.3%
Q3 2018+20.7%+21.9%+41.4%
Q2 2018-18.4%-21.6%-17.7%
Q1 2018+3.3%+1.0%-13.4%
Q4 2017-0.9%-2.9%+3.7%
Q3 2017-25.0%-25.2%-23.1%
Q2 2017-2.4%-3.5%-6.9%
Q1 2017+14.0%+13.6%+14.1%
Q4 2016-2.9%+0.2%+4.0%
Q3 2016-4.3%-5.1%-3.5%
Q2 2016+9.3%+8.3%+9.1%
Q1 2016+8.7%
Q4 2015+4.0%
Q3 2015+1.0%
Q2 2015+1.6%
Q1 2015+2.8%
Q4 2014-1.1%
Q3 2014-2.6%
Q2 2014+2.7%
Q1 2014-4.2%
Q4 2013-0.5%
Q3 2013+2.7%
Q2 2013-0.7%
Q1 2013+0.4%
Q4 2012-0.7%
Q3 2012+2.7%
Q2 2012+0.5%
Q1 2012+1.3%
Q4 2011+1.2%
Q3 2011+1.1%
Q2 2011-8.1%
Q1 2010-0.8%
Q1 2011-0.6%
Q4 2008-1.7%
Q4 2010-1.7%
Q3 2010-1.4%
Q3 2009-1.4%
Q4 2009+0.8%
Q2 2009+0.8%
Q2 2010+0.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro