Why Newell Brands Shares Are Gaining Friday
Portfolio Pulse from Nabaparna Bhattacharya
Newell Brands Inc. (NWL) shares rose after reporting Q1 earnings at the break-even point, surpassing analyst expectations of a 7-cent loss. Q1 revenues of $1.653 billion also exceeded forecasts, despite an 8.4% drop in net sales year-over-year. The company saw improvements in gross and operating margins and increased operating cash flow. Newell announced an organizational realignment expected to save $65-$90 million annually, with $55-$70 million in savings in 2024. However, it forecasts a Q2 sales decline of 9%-7% and EPS below analyst expectations.
April 26, 2024 | 3:58 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Newell Brands Inc. shares increased after surpassing Q1 earnings and revenue expectations, despite a year-over-year sales decline. The company's organizational realignment aims for significant annual savings, although it anticipates a Q2 sales decline and lower EPS than analysts expected.
NWL's share price increase is directly tied to its Q1 performance exceeding analyst expectations, which typically boosts investor confidence. The organizational realignment and expected annual savings indicate a strategic move to improve profitability, positively impacting investor sentiment. However, the cautious outlook for Q2 sales and EPS tempers expectations, suggesting a balanced view on short-term stock movement.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100