Summary
Newell Brands' management was very confident (Q3 2018 conference call) about additional asset sales and raising $7.4 billion in after-tax proceeds.
The Learning and Development segment (Writing and Baby) rebounded smartly in Q3 2018 with operating income and margins well ahead of Q3 2017.
Management unveiled some promising product innovations for the Food and Appliances and Home and Outdoor Living segments.
There were 51.8 million shares sold short as of November 15th.
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Newell Brands (NWL) posted its Q3 2018 results and reiterated its full year guidance 2018 earnings guidance. Remarkably, only a few days before earnings, shares of Newell were briefly changing hands in the $15s. Yet another timeless reminder that playing in the turnaround/ value sandbox is only a game for investors unafraid to get covered in sand. It is rough and tumble and your thesis will often be put to the test. Although, occasionally, even for me as someone accustomed to playing in these turnaround sandboxes for a while now, constantly being tested can be taxing and exasperating. So if you play, please make sure you are well hydrated, take a steady stream of vitamins (preferably GNC), exercise, and get some sleep
The imagery of sandcastles notwithstanding, it certainly feels like Newell turned the proverbial corner. The short thesis, at least in the high teens, suddenly seems questionable.
Now let's take a look at Newell's Q3 results and conference call highlights.
