ATLANTA - Newell Brands (NASDAQ:NWL) reported third quarter earnings that met analyst expectations and raised its full-year outlook, sending shares up 4.46% in after-hours trading.
The consumer goods company posted adjusted earnings per share of $0.16, in line with Wall Street estimates. Revenue came in at $1.95 billion, slightly below the consensus forecast of $1.96 billion but representing a smaller year-over-year decline compared to recent quarters.
Newell Brands said core sales, which exclude the impacts of foreign exchange and divestitures, fell 1.7% in Q3. This marked an improvement from the 3.5% core sales decline seen in the first half of the year.
"During the third quarter, year-over-year sales performance improved sequentially, we drove continued gross and operating margin improvement, while purposefully increasing our level of A&P investment," said CEO Chris Peterson.
The company raised its full-year 2024 earnings guidance, now expecting adjusted EPS of $0.63 to $0.66, up from its previous outlook of $0.60 to $0.65. Newell also increased its operating cash flow forecast to $500-$600 million from $450-$550 million previously.
For the fourth quarter, Newell projects adjusted EPS of $0.11 to $0.14 on a 7% to 4% net sales decline.
While macroeconomic uncertainty remains, Peterson said the company's turnaround efforts are "laying a solid foundation for the future." Newell's gross margin expanded 460 basis points year-over-year to 34.9% in Q3.
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