Why Newell Brands Shares Are Slumping Today

Newell Brands Inc. NWL shares are trading lower on Friday.

The company reported fourth-quarter revenues of $2.076 billion, beating the analyst consensus of $1.980 billion. Revenues fell 9.1% year over year.

The Home & Commercial Solutions segment generated net sales of $1.3 billion compared with $1.4 billion in the prior year period.

The Learning & Development segment generated net sales of $635 million compared with $684 million in the prior year period.

The Outdoor & Recreation segment generated net sales of $165 million compared with $211 million in the prior year period.

Normalized gross margin increased to 32.3% compared with 26.6% in the prior year period. Normalized operating margin increased to 7.7% compared with 4.9% in the prior year period.

Normalized EPS of $0.22 topped the consensus of $0.17.

In January 2024, the company announced an organizational realignment, which is expected to strengthen the company’s front-end commercial capabilities and result in restructuring and related charges in the range of $75 million to $90 million and annualized pre-tax savings in the range of $65 million to $90 million, net of reinvestment.

At the end of 2023, Newell Brands had debt outstanding of $4.9 billion and cash and cash equivalents of $332 million.

Outlook: Newell expects a first-quarter revenue decline of 10%-8%. The company sees adjusted EPS of $(0.09)-$(0.05) versus $0.02 estimate.

The company sees FY24 sales decline of 8% to 5%. Newell Brands sees adjusted EPS of $0.52-$0.62 versus $0.77 estimate.

Price Action: NWL shares are trading lower by 12% to $7.43 on the last check Friday.