We think pricing power and demand may fade for NWL's consumer brand products as households face rising cost of living. We keep our $25 target on forward P/E of 13.2x our 2022 EPS, above three-year historic average at 12.5x. We keep our 2022 EPS at $1.90 and 2023's at $2.10 per share. NWL posted Q1 2022 adj. EPS of $0.36, $0.09 better than consensus estimate. Sales at $2.4b were 4% above consensus with pricing increases, but supply constraints hurt revenue potential. In Q1 2022, Learning & Development sales were up +5% Y/Y (27% of total sales, 21.0% operating margins), Outdoor & Recreation +12% (16%, NM), and Commercial Solutions +8% (22%, 11.3%). Units that showed sluggish growth were Home Solutions -1% Y/Y (21%, 20.9%), and slightly weaker was Home Appliances -5% (14%, NM), a sign that inflation may be hurting consumer demand. In Q1 2022, NWL has $344m cash, partly from $620m in proceeds from sale of CH&S unit to Resideo Technologies, and NWL paid $375m in cash dividends and common share repurchases.
|Insider Sell: Velodyne Lidar|
|Insider Buy: Re/max Holdings|
|BGC Partners Updates Q2 Revenue Outlook|
|Unum Group Chief Accounting Officer Cherie Pashley t...|
|Inter & Co Soars 33% Late Hours; UBS Initiates Cover...|