Newell Brands Inc. ( NWL ) shares are trading higher, fueled by better-than-expected second-quarter earnings and a raised FY24 outlook.

The company reported adjusted earnings per share of 36 cents, beating the analyst consensus of 21 cents.

Second quarter net sales were $2.03 billion, a 7.8% decline from the prior year period. Sales missed the street view of $2.046 billion.

Core sales declined 4.2% compared with the prior year period. Gross margin increased to 34.4% compared with 28.5% in the prior year period. Normalized gross margin increased to 34.8% compared with 29.9% in the prior year period.

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Net interest expense was $78 million compared with $76 million in the prior year period.

At the end of the second quarter, Newell Brands ( NWL ) had debt outstanding of $5.0 billion and cash and cash equivalents of $382 million, compared with $5.4 billion and $317 million, respectively, at the end of the second quarter of 2023.

Chris Peterson, Newell Brands President and Chief Executive Officer, said, “We are making significant progress in driving Newell’s turnaround… We remain laser focused on returning the business to sustainable and profitable growth and are confident that we are pursuing the right strategy to accomplish this.”

Outlook: Newell Brands ( NWL ) has raised its FY24 outlook, now projecting adjusted EPS of $0.60-$0.65, up from $0.52-$0.62, compared to an estimate of $0.60, with a revenue decline of 7%-6% from a prior forecast of 8%-5%, versus a $7.63 billion estimate.

Newell Brands’ third quarter outlook projects adjusted EPS of $0.14-$0.17, below the $0.20 estimate, with revenue expected to decline by 6%-4%.

Mark Erceg, Newell Brands ( NWL ) Chief Financial Officer, said, “While the macroeconomic environment remains choppy, the transformation of our business is clearly underway, which has given us confidence to improve our financial outlook for the year.”

Price Action: NWL shares are trading higher by 27.1% to $8.06 at last check Friday.

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