Shares of Newell Brands Inc. (NWL) dropped 3.6% in premarket trading on Friday following the company’s fourth-quarter earnings announcement. While the consumer goods company reported better-than-expected earnings and sales for the quarter, their full-year outlook fell short of expectations.
Fourth-Quarter Performance
Newell Brands, known for their popular brands including Rubbermaid, Sharpie, Graco, and Yankee Candle, reported a net loss of $86 million, or a loss of 21 cents per share for the quarter. However, this was an improvement compared to the net loss of $249 million, or a loss of 60 cents per share, in the same quarter of the previous year.
After adjusting for certain items, Newell Brands earned 22 cents per share. Analysts surveyed by FactSet had predicted earnings of 17 cents per share.
The company’s sales for the quarter were $2.08 billion, a 9% decrease compared to the prior year’s quarter. Despite the decline, this exceeded the FactSet forecast of $1.98 billion. Newell Brands attributed the sales decrease to a core sales decline of 9.3%, as well as the impact of category exits and favorable foreign exchange rates.
Full-Year Outlook
Newell Brands provided a forecast for 2024, expecting net sales to range between $7.45 billion and $7.7 billion. They anticipate adjusted earnings to be in the range of 52 cents to 62 cents per share.
Analysts surveyed by FactSet had higher expectations, predicting full-year sales of $7.7 billion and earnings of 77 cents per share.
Stock Performance
Over the past 52 weeks, Newell Brands shares have experienced a significant decline of 42.8%, in contrast to the 22.2% gain of the S&P 500 index.
Overall, while Newell Brands reported strong fourth-quarter earnings and sales, their soft full-year outlook has left investors concerned about the company’s future performance.
