Core Viewpoint - Newell Brands Inc. (NWL) is anticipated to report a year-over-year decline in both revenue and earnings for Q1 2025, with revenues expected at $1.55 billion, reflecting a 6.4% decrease from the previous year [1] Financial Performance - The consensus estimate for the bottom line indicates a loss of seven cents per share, a decline from break-even earnings in the same quarter last year [2] - In the last reported quarter, NWL's earnings exceeded the Zacks Consensus Estimate by 14.3%, with an average earnings beat of 46.4% over the trailing four quarters [2] Factors Impacting Results - The company faces challenges from a tough macroeconomic environment, including high core inflation, which has likely led to reduced demand for discretionary and durable products [4] - Additional headwinds include foreign currency translations, adverse impacts from business exits, shifting consumer preferences, and geopolitical volatility [5] - Management projected a net sales decline of 5-8% and core sales drop of 2-4% for Q1 2025, with a normalized operating margin expected to be between 2-4%, down from 4.8% in the prior year [6] Segment Performance - The Outdoor & Recreation segment is projected to experience a significant sales drop of 12.2% [7] Positive Aspects - On a positive note, NWL's front-end commercial capabilities, including innovation and business development, along with a streamlined organizational structure, may provide some support to performance [8] - Pricing strategies in international markets to counter inflation and currency fluctuations are also expected to help cushion the company's performance [8] Valuation - From a valuation perspective, NWL is trading at a forward 12-month price-to-earnings ratio of 7.39x, which is below its five-year high of 16.88x and the industry average of 20.94x, indicating attractive investment opportunities [10] - Over the past six months, NWL's shares have declined by 40.2%, contrasting with a 0.4% growth in the industry [11]

Newell Brands Inc. (NASDAQ: NWL ) is going to report the company’s Q1 results on the 30 th of April. The household product manufacturer has continued its significant 2023 turnaround plan after a weak financial performance, earlierI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers ...

Company Overview - WoodWick® Candles is a leader in home fragrance and part of the Newell Brands portfolio, known for its luxurious candle offerings since 2006 [5][7] - The company focuses on combining refined designs with nature-inspired fragrances, utilizing patented Pluswick® technology for a unique sensory experience [5][6] Product Launch - WoodWick® has introduced the Precious Metals Collection, a new line of candles inspired by Earth's rarest elements, featuring a metallic aesthetic and rich, multi-layered scents [1][2] - The collection includes eight fragrances, each reflecting the essence of precious metals such as gold, silver, and bronze, designed in elegant hourglass jars [4][5] Fragrance Details - The fragrances in the Precious Metals Collection include: - Sparkling Pomelo: Pink pepper, juicy lychee, and sparkling aldehydes [5] - Marine Amber: Blue sea salt, cedarwood, and pearl crystals [5] - Volcanic Orris: Pear, orris, and sandalwood [5] - Shimmering Spice: Saffron, bronzed leather, and smoked woods [5] - Rosa D'Oro: Damask rose, warm oud, and ambery labdanum [5] - Candescent Coast: Marine notes, white teak, and moss [5] - Melanite Mist: Aldehydes and rain on rock moss [5] - Cypress Ore: Lavender and blonde woods [5] Availability - The Precious Metals Collection is available for purchase at WoodWick.com and Yankee Candle stores for $24.99, with Amazon availability expected in late 2025 [4]

Core Viewpoint - Newell Brands Inc. (NWL) has experienced a significant stock decline of 36% over the past three months, contrasting with the industry's growth of 1.1% and the broader Zacks Consumer Staples sector's return of 3.6% [1] Stock Performance - NWL stock closed at $6.58, nearing its 52-week low of $5.39, and is trading below its 50- and 200-day moving averages, indicating potential weakness in momentum [3] Financial Challenges - Newell is facing multiple headwinds affecting its financial performance, including inflationary pressures that have led to muted demand for discretionary and durable products. The company anticipates continued challenges in 2025, particularly for lower-income consumers [4] - The Outdoor & Recreation segment, the smallest in terms of revenue and profitability, saw a 7.9% year-over-year decline in net sales in Q4 2024, with core sales dropping 3.7%. Significant core sales growth is not expected until 2026 [5] - The company has lowered its fiscal 2025 sales guidance to a decline of 2-4% year-over-year, with net sales for Q1 2025 expected to decline by 5-8% and core sales anticipated to drop by 2-4% [6] Earnings Estimates - The Zacks Consensus Estimate for Newell's earnings per share has been revised downward, with estimates for 2025 and 2026 decreased by a penny to 72 cents and 85 cents per share, respectively [7] Strategic Initiatives - Newell is focusing on innovation, brand building, and improving sales in profitable markets. The company has introduced a new operating method aimed at enhancing efficiency and adaptability [10][11] - The organizational realignment is designed to strengthen commercial capabilities, enhance consumer insights, and improve brand communication, which is expected to drive operational efficiencies and reduce complexity [12] - In 2025, Newell aims to improve profit margins, reduce debt, enhance cash flow, and invest in restructuring projects to boost long-term efficiency [13] Conclusion - Newell Brands is currently facing significant challenges, with stock performance declining and trading below key moving averages. However, strategic initiatives may support long-term recovery [14]

Core Viewpoint - Newell Brands Inc. (NWL) stock has experienced a significant decline of 30.4% over the past month, underperforming the broader industry and the Consumer Staples sector, primarily due to weaker-than-expected fourth-quarter 2024 results [1][3]. Financial Performance - Revenues for Newell declined by 6.1% year over year, missing the Zacks Consensus Estimate [1]. - Core sales decreased by 3%, attributed to lower demand, business exits, and unfavorable foreign exchange impacts [3]. - The Home & Commercial Solutions segment saw a net sales decline of 7.7% year over year, with core sales dipping 4.6% due to weakness in the Kitchen and Home Fragrance businesses [4]. - The Learning and Development segment experienced a 1.1% decline, while the Outdoor and Recreation segment posted a net sales decline of 7.9% [5]. Strategic Initiatives - Newell has implemented strategic pricing actions in international markets to mitigate inflation and currency pressures, positively impacting core sales [6]. - The company is executing a new corporate strategy focused on innovation, brand-building, and operational efficiency through standardization and scale [8]. - Newell's organizational realignment aims to enhance commercial capabilities and improve consumer insights and brand communication [10]. Margin Improvement - Newell's normalized gross margin expanded by 330 basis points year over year to 34.6%, marking the sixth consecutive quarter of improvement [7]. - The normalized operating margin increased by 70 basis points to 7.1%, indicating progress in operational efficiency and cost management [7]. Future Outlook - For 2025, Newell anticipates a sales decline of 2-4% year over year, with core sales expected to decline by 2% to increase by 1% [12]. - The company projects normalized EPS to be between 70-76 cents, an increase from 68 cents reported last year [12]. - Analysts have revised downwards the EPS estimates for 2025 and 2026 by 3.8% and 7.5%, respectively, but still suggest year-over-year increases [13].

Operating Segments - The Company has three primary operating segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation[21]. - The Home and Commercial Solutions segment includes brands such as Ball, Calphalon, and Rubbermaid, focusing on household products and commercial cleaning solutions[23]. - The Learning and Development segment offers writing instruments and baby gear, primarily under brands like Dymo and Graco[25]. - The Outdoor and Recreation segment markets active lifestyle products under brands such as Coleman and Contigo[27]. Financial Performance - The Company’s largest customer, Amazon, accounted for approximately 15% of net sales in 2024, while Walmart accounted for about 14%[41]. - Approximately $1.0 billion of the Company's debt carries a variable interest rate, with a hypothetical 1% increase in these rates potentially increasing interest expense by about $10 million[291]. - Approximately 38% of the Company's sales in 2024 were denominated in foreign currencies, with the European Euro at 9%, British Pound at 5%, and Canadian Dollar and Mexican Peso at 4% each[292]. Workforce and Operations - The Company employs approximately 23,700 people worldwide, with a significant portion in manufacturing and supply chain roles[46]. - The Company implemented a new operating model in 2023 to drive simplification and unlock efficiencies across its segments[22]. Innovation and Market Challenges - The Company continues to invest in research and development to create innovative products that meet consumer needs[45]. - The Company faces competitive pressures from large retailers and must continuously innovate to maintain market share[39]. Risk Management - The Company did not enter into any commodity-based derivatives during 2024 and 2023, indicating a strategy to monitor commodity price risks without active hedging[293]. - The Company is exposed to credit loss from counterparties to its derivative financial instruments, but does not anticipate non-performance due to the high ratings of these institutions[294].

Group 1 - Newell Brands Inc. (NASDAQ: NWL) has provided new insights regarding potential operational scale and efficiency benefits expected to materialize in 2025 [1] - There has been a noted decrease in total restructuring expenses, which could positively impact the company's financial performance [1] Group 2 - The analyst holds a beneficial long position in NWL shares through various financial instruments [2] - The article reflects the author's personal opinions and is not influenced by any compensation from external sources [2]

Financial Data and Key Metrics Changes - Fourth quarter and full year core sales growth was in line with expectations, with a sequential improvement in the second half of 2024 compared to the first half [12] - The company reported a 3.4% core sales decline for the year, despite experiencing category contraction [13] - Normalized gross margin improved by 460 basis points to 34.1% for the full year compared to 2023, marking the highest full-year normalized gross margin since 2018 [14][47] - Normalized operating margin increased by 210 basis points to 8.2%, driven by improved gross margin [15] - The company generated nearly $500 million of operating cash flow, allowing for a reduction in debt and a leverage ratio of 4.9 times at year-end [16][51] Business Line Data and Key Metrics Changes - Core sales trends improved across all six business units, with three units turning positive for the year, specifically in baby, writing, and commercial businesses [12] - The learning and development segment and the international business achieved positive core sales growth in all quarters of 2024 [12] - Fourth quarter core sales were down 3%, with pricing in international markets contributing significantly to performance [41] Market Data and Key Metrics Changes - The company faced a 2.6% currency headwind in net sales during the fourth quarter [43] - Imports from China now account for about 15% of the company's total cost of goods sold, with expectations to reduce this to less than 10% by the end of the year [20][21] Company Strategy and Development Direction - The company aims to return to top-line growth through continued execution of its corporate strategy, focusing on product and commercial innovation, distribution expansion, and international growth [25] - The strategy includes a significant emphasis on US manufacturing capabilities to leverage competitive advantages in certain product categories [92] - The company plans to continue deleveraging the balance sheet and improving cash conversion cycles while investing in high-return capability improvement projects [36] Management's Comments on Operating Environment and Future Outlook - The macroeconomic backdrop is expected to be dynamic, with lower-income consumers under pressure from inflation and evolving tax policies [24] - Management expressed confidence in returning to sustainable top-line growth and improving operating margins despite ongoing challenges [38] - The preliminary guidance for 2025 indicates core sales expected to be between -2% and +1%, with a focus on sequential improvement [57] Other Important Information - The company has reduced its brand count from 80 to about 55 and plans to exit a few more small brands in 2025 [114] - The company has invested close to $2 billion in US manufacturing since 2017, positioning itself competitively against peers [95] Q&A Session Summary Question: Focus on organic or core sales growth for 2025 - Management expects core sales guidance for 2025 to be between -2% and +1%, with a significant sequential improvement anticipated [73][74] Question: Clarity on Q1 core sales drivers - Q1 is typically the smallest quarter, and management does not read too much into it as an indicator for the year [100] Question: Practical tariff exposure in China - Current exposure is at 15%, expected to reduce to 10% by year-end, primarily related to the baby business [126]

Core Insights - Newell Brands Inc. (NWL) reported mixed fourth-quarter 2024 results, with earnings surpassing estimates but sales falling short, both metrics declining year over year [1][2] Financial Performance - Normalized earnings per share (EPS) were 16 cents, down 11.1% from 18 cents in the prior year, exceeding the consensus estimate of 14 cents [1] - Net sales decreased by 6.1% year over year to $1,949 million, missing the consensus estimate of $1,973 million, with core sales down 3% [2] - The normalized gross margin improved by 330 basis points year over year to 34.6%, marking the sixth consecutive quarter of year-over-year improvement [4] - The normalized operating margin increased by 70 basis points year over year to 7.1% [4] Segment Performance - Home & Commercial Solutions segment net sales were $1.2 billion, down 7.7% year over year, with core sales declining 4.6% [5] - Learning and Development segment recorded net sales of $628 million, down 1.1% year over year, but core sales grew by 0.4% [6] - Outdoor and Recreation segment net sales were $152 million, a decline of 7.9% year over year, with core sales falling 3.8% [7] Organizational Changes - Newell's organizational realignment aims to enhance front-end commercial capabilities, including consumer understanding and brand communication [8] - The realignment includes establishing a cross-functional brand-management organization and simplifying regional go-to-market structures [9] - The company achieved annualized pretax savings of $75 million under the realignment plan, with restructuring costs of $52 million [10] Financial Position - At the end of the quarter, NWL had cash and cash equivalents of $198 million, long-term debt of $4.5 billion, and shareholders' equity of $2.8 billion [12] - The company generated $496 million in cash from operating activities during 2024 and refinanced $1.25 billion of debt [12] Outlook - For 2025, management anticipates sales to decline by 2-4% year over year, with core sales expected to decrease by 2% to increase by 1% [13] - The normalized operating margin is projected to be between 9-9.5%, and normalized EPS is expected to be in the range of 70-76 cents [13] - For the first quarter, net sales are expected to drop by 5-8%, with core sales anticipated to decline by 2-4% [14]

Core Insights - Newell Brands (NWL) reported a revenue of $1.95 billion for Q4 2024, reflecting a year-over-year decline of 6.1% and an EPS of $0.16, down from $0.22 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.97 billion, resulting in a surprise of -1.21%, while the EPS exceeded expectations by 14.29% [1] Financial Performance Metrics - Net sales in Learning and Development were $628 million, slightly below the estimated $631.91 million, marking a -1.1% change year-over-year [4] - Outdoor and Recreation net sales reached $152 million, surpassing the average estimate of $136.12 million, but still represented a -7.9% decline year-over-year [4] - Home and Commercial Solutions reported net sales of $1.17 billion, below the estimated $1.21 billion, indicating an -8.4% year-over-year change [4] - Normalized Operating Income (Loss) for Corporate was -$71 million, better than the average estimate of -$78.89 million [4] - Normalized Operating Income (Loss) for Outdoor and Recreation was -$28 million, worse than the average estimate of -$16.82 million [4] - Normalized Operating Income (Loss) for Learning & Development was $101 million, slightly below the average estimate of $102.97 million [4] - Normalized Operating Income (Loss) for Home and Commercial Solutions was $137 million, significantly lower than the estimated $211.48 million [4] Stock Performance - Newell Brands' shares have returned -1.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]