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]

Core Viewpoint - Newell Brands reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, but down from $0.22 per share a year ago, indicating a 14.29% earnings surprise [1][2] Financial Performance - The company posted revenues of $1.95 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.21% and down from $2.08 billion year-over-year [2] - Over the last four quarters, Newell Brands has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Stock Performance - Newell Brands shares have declined approximately 2.7% since the beginning of the year, contrasting with the S&P 500's gain of 3.4% [3] - The current Zacks Rank for Newell Brands is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $1.61 billion, and $0.76 on revenues of $7.56 billion for the current fiscal year [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Consumer Products - Staples industry, to which Newell Brands belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Group 1 - Sharpie® has announced its second class of Rookies of the Year, Ashton Jeanty and Tetairoa McMillan, following a successful inaugural year with alumni Rome Odunze and Michael Penix Jr. [1][2] - The Sharpie S-Gel pen will be utilized by Jeanty and McMillan throughout their rookie seasons, emphasizing its smooth and reliable writing experience for important signatures [2][3] - Sharpie products are positioned as essential tools for athletes to build their personal brands and engage with fans through autographs [3][4] Group 2 - Sharpie has a long history, having introduced the first pen-style permanent marker in 1964, and continues to innovate across various writing tools [5] - The brand offers a wide selection of products designed for precision and performance, suitable for various surfaces and applications [5] - Newell Brands, the parent company of Sharpie, is a leading global consumer goods company with a diverse portfolio of well-known brands [6]

Newell Brands Announces Fourth Quarter and Full Year 2024 Results Transformation of Structural Economics Continues at Pace Operating and Gross Margin Both Improve Year-over-Year Provides Preliminary Outlook for Full Year 2025 Reported gross margin was 34.2% compared with 29.9% in the prior year period, as the positive impact from productivity savings and pricing more than offset the headwinds from lower sales volume, inflation and foreign exchange. Normalized gross margin was 34.6% compared with 31.1% in th ...

Wall Street analysts expect Newell Brands (NWL) to post quarterly earnings of $0.14 per share in its upcoming report, which indicates a year-over-year decline of 36.4%. Revenues are expected to be $1.97 billion, down 5% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 14% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timefram ...

Newell Brands Inc. (NWL) is expected to register year-over-year declines in the top and bottom lines when it reports fourth-quarter 2024 results on Feb. 7, 2025, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2 billion, indicating a drop of 5% from the figure reported in the year-ago quarter.The consensus estimate for the bottom line is 13 cents per share, which indicates a plunge of more than 40% year over year. The consensus mark has gone down a penny in the pas ...

The market expects Newell Brands (NWL) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be release ...