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Yesterday, Newell Rubbermaid Inc (NYSE: NWL) raised third quarter revenue and profit guidance. Revenue growth is expected to come in at the high end of the previously announced range of 5% to 7%, citing strength in Home & Family, Tools & Hardware segments, as well as favorable forex. Also, Newell said gross margins are expected to jump by 125 to 175 basis points, another big increase for the company, which showed good gross margin improvement earlier this year.We blogged last week that investors should jump into Newell stock at $25 as it had gotten too cheap. Newell, which has been showing signs of beginning a sustainable turn around, has gotten hit hard in the recent stock market correction, with shares dropping from $30 to around $25, for a 17% decline.
However, we thought recent comments by Mark Ketchum, Newell's CEO, to analysts indicating it could meet its growth targets held some merit. Ketchum bought 20,000 shares of stock, according to a SEC filing a week ago Friday. Since blogging last week that investors should scoop up shares, Newell is up 12%.
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