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Sep 30, 2020
Newell Brands Q3 2020 Earnings Report
Newell Brands' Q3 2020 results were announced, featuring net sales growth and significant operating profit and margin expansion.
Key Takeaways
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.
Newell Brands
Newell Brands
Newell Brands Revenue by Segment
Newell Brands Revenue by Geographic Location
Revenue by Segment
Learning & Dev Revenue
CapyFin.comOutdoor & Recreation Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.com Forward Guidance
The company reinstituted its practice of providing guidance with following outlook for full year and fourth quarter 2020.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income