6:36 am Newell Rubbermaid beats by $0.03, misses on revs; reaffirms FY14 guidance; raises quarterly dividend 13% to $0.17 (NWL) : Reports Q1 (Mar) earnings of $0.35 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.32; revenues fell 0.7% year/year to $1.23 bln vs the $1.25 bln consensus.
Core sales, which exclude the impact of changes in foreign currency, grew 0.7 percent.
Normalized gross margin was 38.8 percent, a 60 basis point improvement compared with the prior year period. Reported gross margin was 38.1 percent versus 38.2 percent in the prior year period.
"We are confident in our full year financial guidance and expect the company's core sales and earnings per share growth to accelerate through the balance of the year as we significantly increase advertising and promotion investment levels in support of our brands and innovation. Importantly, the Board of Directors has approved a 13 percent increase in our quarterly dividend to $0.17, an annualized rate of $0.68 per share. This is the fourth dividend increase in the last three years, which is a reflection of the Board's continued confidence in Newell's strong cash generation ability and in the promise of our Growth Game Plan."
The company expects the infant harness buckle discussions will be resolved in the second quarter.
Co reaffirms guidance for FY14, sees EPS of $1.94-2.00, excluding non-recurring items, vs. $1.98 Capital IQ Consensus; reaffirms cores sales +3-4%. The company now expects foreign exchange to have a negative impact on 2014 net sales of about 200 basis points and to have a negative impact on both normalized and reported EPS of $0.04 to $0.05 per diluted share for the balance of 2014. Subsequent to the first quarter, the company will begin using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (~10.5 to 11.0 Bolivars per U.S. dollar).
