Shares of Newell (NWL), maker of brands such as Rubbermaid and Sharpie, tumbled in on Monday after the company reported disappointing quarterly earnings before trading this morning. Fourth quarter revenue came in at $4.14 billion, below the $4.27 billion expected, according to Thomson Reuters. Although revenue and profit were way up over last year, the big jump in sales was a result of Newell’s $15.4 billion merger with former rival Jarden in April. The company also cut the lower end of its sales growth projection for the year to 2.5%, down from 3%.
The news wasn’t all bad, though. The company boosted its guidance for the year, upping its expected earnings per share by $0.10 to between $2.95 and $3.15.
Newell has recently begun a concerted effort to bolster its web presence as more and more consumers shift away from shopping at brick and mortar stores, which generates 85% of the company’s revenue. As foot traffic and sales continue to drop in shopping malls, the company has spent quite a bit of effort on trying to reinvent itself.
Newell is currently involved in a slew of deals with other companies after stating it would shake up its portfolio last year, which include the pending $1.95 billion sale of its tools business to Stanley Black and Decker, and the purchase of storage container maker Sistema Plastics for $470 million. The recent flurry of activity has intrigued Wall Street, with the company’s stock more than 28% higher than it was a year ago, cresting in August at $55.45. Shares of the company have come down to earth since then at just over $44, but are still $11 higher than their year-long low.
Newell’s CEO, Michael Polk, has previously been listed as one of several corporate executives who will assist President Trump as he tries to create more manufacturing jobs in the U.S. In his earnings call he said he didn’t think the company would see any benefits this year from the policies Trump is targeting to help big businesses because it is too early to know how exactly rolling back corporate taxes and enacting new trade policies will manifest.