They’re both poised to spin off assets

Article Excerpt

NEWELL BRANDS INC. $27 (New York symbol NWL; Consumer sector; Shares outstanding: 485.2 million; Market cap: $13.1 billion; Divd. yield: 3.4%; Takeover Target Rating: Medium; TSINetwork Rating: Average; www.newellbrands.com) makes a variety of household goods such as pens, coffee makers and baby strollers. On April 15, 2016, the company took its current form through the merger of Newell Rubbermaid and Jarden Corp. Newell shareholders now own 55% of the combined firm. Earnings in the fourth quarter of 2017 fell 15.0%, to $0.68 a share from $0.80 a year earlier. Due to recent asset sales, revenue fell 9.5%, to $3.74 billion from $4.14 billion. On a comparable basis, revenue declined 1.9%. The lower results are partly due to the bankruptcy of Toys ‘R’ Us, which is a leading retailer of baby strollers and related products. As well, Hurricane Harvey damaged several plastic producers in the Gulf region of the U.S. The disruption has increased Newell’s raw material costs. It has also hurt the company’s profit…