Earnings Analysis for NWL

Revenue Analysis:

Reviewing NWL’s financial data, there is evident variability in Total Revenue and Operating Revenue across the quarters. From 2023-09-30 to 2024-03-31, NWL has experienced a decline in Total and Operating Revenues from $2,048,000,000 to $1,653,000,000, showing decreased business operations. Gross Profit declined from $621,000,000 in Q3 2023 to $504,000,000 by Q1 2024. Gross Profit margins have reflected the proportional response to revenue fluctuations.

Cost Management:

Cost of Revenue was highest on 2023-09-30 at $1,575,000,000 and decreased to $1,149,000,000 by 2024-03-31. Despite reduced costs of revenue, Total Expenses and Operating Expenses increased overall, moving from $1,925,000,000 to $1,611,000,000 from Q3 2023 to Q1 2024, highlighting potential inefficiencies or increased operational costs that are not directly linked to the production costs.

Profitability Analysis:

EBITDA ranges dramatically from negative values such as -$148,000,000 in Q3 2023 to a positive peak of $95,000,000 in Q1 2024, implying fluctuations in operating efficiency and potential non-recurring costs or adjustments. Operating Income shows similar fluctuations. Notably, Pretax Income remained negative, decreasing from -$116,000,000 in Q3 2023 to -$60,000,000 by Q1 2024, while Net Income has shown substantial negative figures, maintaining a loss but improving slightly over the period examined.

Cash Flow Indicators:

Reconciled Depreciation values hovered between $81,000,000 and $85,000,000 across the periods, suggesting consistent capital expenditure levels on depreciating assets. Interest Expense consistently stands at $68,000,000 to $70,000,000, underlining a steady cost of debt financing.

Taxation:

The Tax Rate for Calcs has seen variations from as high as 0.4 to as low as around 0.12, influencing the corporation’s tax provisions significantly. The Tax Effect of Unusual Items has consistently shown negative effects on profitability, indicating non-standard one-time fiscal impacts are partly mitigated by tax effects.

Shareholder Metrics:

Diluted and Basic EPS both ranged from a low of -$0.53 to a high of $0.04, reflecting the underlying challenges in profitability and operational issues. Diluted NI Available to Common Stockholders, much like Net Income, remained in negative territories, raising concerns about NWL’s ability to generate shareholder value.

Conclusion:

Over the past periods, NWL has shown variable revenue performance with increased cost burdens, resulting in consistently negative profitability metrics. The apparent volatility in operational performances, coupled with the negative impacts from financial and tax-related adjustments, suggests a focus on strategic cost management and operational efficiency could be necessary. Improved cost structures, along with a review of potential unusual costs and their implications, could aid in stabilizing financial outcomes.