Consumer goods firm Newell Brands' Q2 sales down 4.8%

Newell Brands

01/08/2025 11:09

Overview

Newell Brands 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 expects full-year normalized EPS of $0.66 to $0.70

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

Newell Brands 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/Miss
Actual
Consensus Estimate
Q2 Sales
$1.94 bln
$1.95 bln (8 Analysts)
Q2 Normalized EPS
Meet
$0.24
$0.24 (11 Analysts)
Q2 EPS
$0.11
Q2 Net Income
$46 mln


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 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: ID:nBw7mWVzTa

(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.)