Overview

* Newell Brands ( NWL ) Q2 net sales decline 4.8%

* Gross margin expands 100 basis points yr/yr, highest rate in four years

* Normalized EPS meets analyst expectations at $0.24, per LSEG data

Outlook

* Company sees Q3 normalized EPS of $0.16 to $0.19

* Newell Brands ( NWL ) expects full-year normalized EPS of $0.66 to $0.70

* Company anticipates full-year net sales decline of 3% to 2%

* Newell Brands ( NWL ) estimates $155 mln incremental cash tariff cost in 2025

Result Drivers

* GROSS MARGIN EXPANSION - Achieved highest gross margin rate in four years, driven by gross productivity and pricing strategies

* DEBT REFINANCING - Refinanced $1.25 bln of debt, per CFO Mark Erceg

* SALES DECLINE - Net sales declined 4.8% due to unfavorable foreign exchange and business exits, per company

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales $1.94 $1.95

bln bln (8

Analysts

)

Q2 Meet $0.24 $0.24

Normaliz (11

ed EPS Analysts

)

Q2 EPS $0.11

Q2 Net $46 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the appliances, tools & housewares peer group is "hold"

* Wall Street's median 12-month price target for Newell Brands Inc ( NWL ) is $7.00, about 19.9% above its July 31 closing price of $5.61

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)