Key Events in the Consumer Sector in the Second Week of May

(Continued from Prior Part)

Price movement

Newell Brands (NWL) rose by 0.96% and closed at $47.49 per share at the end of the second week of May 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.96%, 7.5%, and 8.3%, respectively, as of the same day. This means that Newell Brands is trading 3.5% above its 20-day moving average, 7.7% above its 50-day moving average, and 13.0% above its 200-day moving average.

Related ETF and peers

The Vanguard Large-Cap ETF (VV) invests 0.06% of its holdings in Newell Brands. VV tracks a market-cap-weighted index that covers 85% of the market capitalization of the US equity market. VV’s YTD price movement was 0.15% as of May 13, 2016.

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

• Fortune Brands Home & Security (FBHS) – $8.6 billion

• Avery Dennison Corporation (AVY) – $6.8 billion

• Tupperware Brand Corporation (TUP) – $2.8 billion

Newell Brands declared a dividend

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

Ralph Nicoletti has been appointed as the company’s executive vice president and CFO effective June 8, 2016.

Performance in fiscal 1Q16

Newell Brands reported fiscal 1Q16 net sales of ~$1.31 billion—a rise of 4.0% compared to net sales of ~$1.26 billion in fiscal 1Q15. Sales of the company’s Writing, Home Solutions, and Baby & Parenting segments rose by 10.8%, 2.1%, and 9.2%, respectively. Sales of its Tools and Commercial Products segments fell by 0.39% and 5.8%, respectively, in fiscal 1Q16—compared to fiscal 1Q15.

Newell Brands reported restructuring costs of $17.7 million in fiscal 1Q16—compared to $27.3 million in fiscal 1Q15. It also reported a loss on the termination of its credit facility of $45.9 million in fiscal 1Q16.

In fiscal 1Q16, its net income and EPS (earnings per share) fell to $40.5 million and $0.15, respectively—compared to $54.1 million and $0.20, respectively, in fiscal 1Q15.

In fiscal 1Q16, Newell’s accounts receivable and inventories rose by 12.8% and 2.7%, respectively—compared to fiscal 1Q15. It reported cash and cash equivalents of ~$8.2 billion in fiscal 1Q16—compared to $215.4 million in fiscal 1Q15. Its current ratio and long-term debt-to-equity ratio rose to 4.8x and 6.0x, respectively, in fiscal 1Q16—compared to 1.1x and 1.2x, respectively, in fiscal 1Q15.

Projections

Newell Brands (NWL) made the following projections for fiscal 2016: