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Newell Brands Declares Quarterly Dividend of $0.19 Per Share

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Price movement

Newell Brands (NWL) has a market cap of $27.1 billion. It rose by 0.52% to close at $54.47 per share on August 11, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.2%, 11.2%, and 24.7%, respectively, on the same day. NWL is trading 6.8% above its 20-day moving average, 10.4% above its 50-day moving average, and 23.4% above its 200-day moving average.

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Related ETF and peers

The Vanguard Large-Cap ETF (VV) invests 0.12% of its holdings in Newell Brands. The ETF tracks a market-cap-weighted index that covers 85% of the market capitalization of the US equity market. The YTD price movement of VV was 8.2% on August 11.

The market caps of Newell Brands’ competitors are as follows:

  • Fortune Brands Home & Security (FBHS) — $9.8 billion
  • Avery Dennison (AVY) — $7.0 billion
  • Tupperware Brands (TUP) — $3.3 billion

Newell Brands declared dividend

Newell Brands has declared a quarterly cash dividend of $0.19 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record at the close of business on August 31, 2016.

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Performance of Newell Brands in 2Q16

Newell Brands reported 2Q16 net sales of $3.9 billion, a rise of 143.8% over the net sales of $1.6 billion in 2Q15. Sales of its writing and its baby and parenting segments rose by 15.8% and 12.4%, respectively. Sales of its home solutions, tools, and commercial products segments fell by 1.1%, 3.8%, and 7.9%, respectively, between 2Q15 and 2Q16.

NWL reported a loss related to the extinguishment of its debt-credit facility of $1.2 million in 2Q16. The company’s gross profit margin and operating income fell by 28.6% and 35.9%, respectively, between 2Q15 and 2Q16.

Its net income and EPS (earnings per share) fell to $135.2 million and $0.30, respectively, in 2Q16, compared with $148.5 million and $0.55, respectively, in 2Q15. It reported non-GAAP (generally accepted accounting principles) normalized EPS of $0.78 in 2Q16, a rise of 21.9% over 2Q15.

NWL reported cash and cash equivalents and inventories of $627.3 million and $2.9 billion, respectively, in 2Q16, compared with $238.7 million and $935.6 million, respectively, in 2Q15. Its current ratio rose to 1.6x, and its long-term debt-to-equity ratio fell to 1.1x in 2Q16, compared with 1.1x and 1.2x, respectively, in 2Q15.

Projections

The company recently reported that “Core sales exclude the impact of foreign currency, all acquisitions (other than the Jarden acquisition) until their first anniversary and all planned and completed divestitures (which includes the deconsolidation of Venezuela). Core sales include the negative impact of planned product line exits.”

The company has reaffirmed the following projections for 2016:

  • core sales growth in the range of 3.0%–4.0%
  • normalized EPS in the range of $2.75–$2.90
  • an effective tax rate in the range of 29%–30%

Next, we’ll discuss J&J Snack Foods.

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