FX.co ★ Newell Brands Sees Q3 EPS Below Market, Lifts FY24 Earnings View; Stock Up In Pre-market

Newell Brands Inc. (NWL), a consumer goods company, has reported mixed outcomes for its second quarter, showcasing higher earnings but lower revenues. On Friday, the company provided guidance for its third-quarter earnings, which fall short of market expectations. Contrary to this, Newell Brands has raised its earnings forecast for the fiscal year 2024, aligning or even exceeding Wall Street estimates.

In pre-market trading on the Nasdaq, shares of Newell Brands surged by approximately 8%, reaching $6.85.

For the third quarter, Newell Brands anticipates normalized earnings ranging between $0.14 and $0.17 per share. This projection accompanies an expected net sales decline of 4% to 6%, with core sales either remaining flat or declining by up to 2%.

According to data compiled by Thomson Reuters, analysts had predicted the company would earn $0.20 per share, excluding special items.

Looking ahead to fiscal 2024, Newell Brands has revised its earnings forecast upward to a range of $0.60 to $0.65 per share, an increase from the previously expected range of $0.52 to $0.62 per share. Analyst consensus stands at $0.60 per share for the fiscal year.

The company now expects a net sales decline of 6% to 7% for the year, with core sales dropping by 3% to 4%. Previously, Newell Brands had projected a net sales decline of 5% to 8% and core sales decline of 3% to 6%.

In the second quarter, Newell Brands reported earnings of $45 million, or $0.11 per share, compared to $18 million, or $0.04 per share, in the same period last year. Adjusted earnings stood at $151 million, or $0.36 per share, surpassing the Street's estimate of $0.21 per share.

Despite this earnings growth, the company's revenues for the quarter fell by 7.8% to $2.033 billion, down from $2.204 billion a year ago. Analysts had forecast revenues of $2.05 billion for the quarter.