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Newell Brands Issues Downbeat First-Quarter Outlook Following Mixed Quarterly Results
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Newell Brands Issues Downbeat First-Quarter Outlook Following Mixed Quarterly Results
Feb 7, 2025 6:36 AM

09:10 AM EST, 02/07/2025 (MT Newswires) -- Newell Brands' ( NWL ) fourth-quarter earnings came in ahead of Wall Street estimates but revenue missed expectations, while the consumer products manufacturer issued a surprise loss outlook for the ongoing three-month period.

The maker of Sharpie markers expects to record an adjusted loss of $0.06 to $0.09 a share for the first quarter of 2025, while the current consensus on FactSet is for per-share non-GAAP earnings of $0.03. Sales are anticipated to decline by 5% to 8%, while the Street is looking for nearly $1.6 billion.

"While much work remains and the macroeconomic backdrop is still uncertain, we are laser-focused on returning the company to sustainable topline growth, continuing to drive operating margin improvement ahead of our evergreen target and strengthening the balance sheet," Chief Executive Chris Peterson said in a statement.

Newell shares fell 4% in pre-market activity.

For the December quarter, the company posted adjusted EPS of $0.16 versus $0.18 the year before, topping the average analyst estimate of $0.14. Sales decreased 6.1% year over year to $1.95 billion, just shy of the Street's view for $1.96 billion. Core sales were down 3% on a yearly basis.

Core sales in Newell's home and commercial solutions segment decreased 4.6% as growth in the commercial business was offset by declines in the kitchen and home fragrance businesses. In the learning and development division, core sales edged 0.4% higher amid gains in the writing business, while outdoor and recreation slid 3.8%. All three segments were impacted negatively by foreign exchange, the company said.

Gross margin improved by 430 basis points year over year to 34.2% in the quarter, as productivity savings and price benefits helped more than counter headwinds from lower sales volume, inflation and foreign exchange, according to Newell.

For the full year 2025, the company expects adjusted EPS to be in a range of $0.70 to $0.76, while the market's forecast is for $0.75. In the previous year, adjusted EPS ticked up to $0.68 from $0.67. Net sales are pegged to decrease by 2% to 4% for the current year, while core revenue is expected to range from a 2% decline to a 1% increase. In 2024, net and core sales fell 6.8% and 3.4%, respectively.

"Newell Brands' ( NWL ) core sales growth is expected to positively inflect during the back half of 2025 and, when that occurs, we believe the work done to create operational scale and efficiency across our plant and distribution system will be even more apparent," Chief Financial Officer Mark Erceg said.

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