Summary
Newell Brands has seen tough times as third quarter results offered some prospects for stabilisation.
The company sees continued core sales declines and has seen revenues erode quickly following these declines and divestitures, without all the proceeds to show for it.
I see upside from here, but note that previous back-of-the-envelope calculations have proven to be too optimistic.
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Newell Brands (NWL) has finally brought some good news to investors as it actually raised the full year adjusted earnings guidance alongside the release of the third quarter results.
In June I concluded that Newell could offer real value, if it would execute well on its plans and deliver on necessary debt reduction. Shares traded around $24 at the time, bounced back to levels in the high twenties following share purchases by Mr. Carl Icahn, and actually fell to levels as low as $15, before solid third quarter results brought shares back to $19 per share.
