Newell Rubbermaid Inc. NWL is slated to report first-quarter 2015 results on May 1, before the opening bell. In the last quarter, the company delivered a positive earnings surprise of 2.1%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Though Newell Rubbermaid delivered better-than-expected earnings in the previous quarter, the company’s significant presence in the global market exposes it to adverse foreign currency changes. In fact, the company’s guidance for 2015 reflects the impact of expected currency headwinds. This, combined with stiff competition from other players, makes us apprehensive about results in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Newell Rubbermaid is likely to beat earnings this quarter, since a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Newell Rubbermaid is currently pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 34 cents.
Zacks Rank: It carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
American Eagle Outfitters, Inc. AEO has an Earnings ESP of +18.18% and a Zacks Rank #2 (Buy).
Best Buy Co., Inc. BBY has an Earnings ESP of +3.45% and a Zacks Rank #3 (Hold).
The Home Depot, Inc. HD has an Earnings ESP of +2.61% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment