Newell Brands stock drops after profit beat expectations, but outlook was below forecasts

44507 newell brands stock drops after profit beat expectations but outlook was below forecasts

Shares of Newell Brands Inc. NWL, -2.32% dropped 3.0% in premarket trading Friday, after the consumer goods company, with brands including Rubbermaid, Sharpie, Paper Mate and Graco, reported second-quarter profit that beat expectations but revenue that missed and provided a downbeat outlook. Net income rose to $204 million, or 49 cents a share, from $197 million, or 46 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 57 cents topped the FactSet consensus of 47 cents. Sales fell 6.5% to $2.53 billion, just below the FactSet consensus of $2.54 billion, as the sales of the CH&S business, unfavorable currency movements and category and store exits weighed. Gross margin was about the same as a year ago at 32.6%, as pricing benefits offset “significant headwind” from inflation. Looking ahead, the company expects third-quarter adjusted EPS of 50 cents to 54 cents and sales of $2.39 billion to $2.50 billion, both below the FactSet consensus for EPS of 57 cents and for revenue of $2.57 billion. The company cut its 2022 adjusted EPS outlook to $1.79 to $1.86 from $1.85 to $1.93. The stock has dropped 10.6% over the past three months through Thursday, while the S&P 500 SPX, +1.42% has slipped 1.4%.

Source: Marketwatch

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