Business
Newell (NWL) Earnings Surpass Estimates in Q1 Sales Dip Y/Y
Newell (NWL) Earnings Surpass Estimates in Q1 Sales Dip Y/Y
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Newell Brands Inc. NWL posted first-quarter 2024 results, wherein both sales and earnings beat the Zacks Consensus Estimate. The company’s normalized loss per share was $0.00 against earnings per share of 6 cents in the year-ago quarter. The bottom-line figure was narrower than the consensus mark of a loss of 7 cents per share.Net sales declined 8.4% year over year to $1.7 billion on lower core sales as well as the impacts of business exits and adverse foreign exchange. Nonetheless, the metric exceeded the consensus estimate of $1.6 billion. This was somewhat offset by positive currency impacts. Also, core sales fell 4.7% year over year. Pricing across the international markets to offset inflation and currency was a significant contributor to core sales.The normalized gross margin expanded 410 bps year over year to 31.2%. The normalized operating margin increased 220 bps year over year to 4.6% in the reported quarter.Newell Brands Inc. Price, Consensus and EPS SurpriseNewell Brands Inc. price-consensus-eps-surprise-chart | Newell Brands Inc. QuoteIn the past three months, shares of this current Zacks Rank #3 (Hold) company have risen 6.9% compared with the industry’s 5% growth.Segmental DetailsNet sales in the Home & Commercial Solutions segment were $893 million in the first quarter, down 8% from the year-ago period. The metric missed the Zacks Consensus Estimate of $907 million. Core sales slipped 4.3% year over year. Higher core sales in Commercial, mainly driven by pricing in the international markets, were more than offset by declines in the Kitchen and Home Fragrance businesses. Also, the impacts of a few business exits acted as deterrents.The Learning and Development segment recorded net sales of $559 million, which dipped 0.9% from the year-ago quarter. The metric beat the consensus mark of $480.6 million. We note that core sales grew 1.8%, which was more than offset by adverse impacts of foreign exchange. Core sales grew in the Writing and Baby businesses.The Outdoor and Recreation segment’s net sales of $201 million declined 25.6% from the year-ago quarter. Also, the metric lagged the consensus mark of $256.5 million. Core sales fell 20.3% in the quarter.Other Financial DetailsNewell Brands ended the quarter with cash and cash equivalents of $372 million, long-term debt of $4.6 billion, debt outstanding of $5 billion and shareholders’ equity of ...