Core Insights - Newell Brands Inc. reported third-quarter results that fell short of analysts' expectations, with adjusted earnings of 17 cents per share, slightly below the expected 18 cents, and revenue of $1.81 billion, missing estimates of $1.88 billion, reflecting a 7.2% decline year-over-year [1] Q4 2025 Outlook - The company projected fourth-quarter 2025 adjusted EPS in the range of 16 to 20 cents, below Wall Street's consensus estimate of 27 cents, and expects quarterly sales between $1.871 billion and $1.930 billion, also missing analysts' estimate of $1.959 billion [2] Full-Year 2025 Guidance - Newell lowered its full-year 2025 guidance, projecting adjusted EPS between 56 and 60 cents, down from a prior forecast of 66 to 70 cents, and below Wall Street's consensus estimate of 68 cents. The full-year sales outlook was also reduced to a range of $7.203 billion to $7.241 billion, compared to the previous estimate of $7.355 billion to $7.430 billion, missing the analyst consensus of $7.346 billion [3] Stock Performance - Following the earnings announcement, Newell shares fell 3.4% to trade at $3.2850, prompting analysts to adjust their price targets [4] Analyst Ratings and Price Targets - Canaccord Genuity analyst maintained a Buy rating but lowered the price target from $9 to $7. RBC Capital maintained a Sector Perform rating and reduced the price target from $8 to $4.5. JP Morgan maintained an Overweight rating and lowered the price target from $6 to $5 [6]

Financial Performance - Net sales for Q3 2025 decreased by 7% to $1,806 million compared to $1,947 million in Q3 2024, primarily due to softness in global demand and reduced retailer inventory levels [122]. - Gross profit for Q3 2025 was $616 million, a decrease of 9% from $679 million in Q3 2024, with a gross margin decline to 34.1% from 34.9% [123]. - For the three months ended September 30, 2025, net sales decreased by 10% to $942 million compared to $1,047 million in 2024, primarily due to soft global demand and distribution losses [129]. - For the nine months ended September 30, 2025, net sales totaled $5,307 million, a decrease of 5.8% from $5,633 million in 2024, impacted by soft global demand across all segments [136]. - H&CS net sales for the nine months ended September 30, 2025 decreased by 9%, impacted by soft global demand and distribution losses, with business exits affecting sales by approximately 1% [146]. - Learning and Development (L&D) net sales for the nine months ended September 30, 2025 decreased by approximately 1% to $2,062 million, while operating income increased by 13.4% to $424 million [148]. - Outdoor and Recreation (O&R) net sales for the nine months ended September 30, 2025 decreased by 6.7% to $599 million, with an operating loss of $5 million, an improvement from a loss of $52 million in the prior year [150]. Operating Income and Expenses - Operating income improved to $119 million in Q3 2025 from an operating loss of $121 million in Q3 2024, reflecting savings from restructuring actions [125]. - Operating income for the three months ended September 30, 2025 was $40 million, a significant improvement from an operating loss of $94 million in the prior year, mainly due to the absence of a $190 million non-cash impairment charge [131]. - Operating income for the nine months ended September 30, 2025 increased to $311 million from $58 million in the prior year, reflecting savings from restructuring actions and the absence of prior year impairment charges [140]. - Operating income for the nine months ended September 30, 2025 was $62 million, a significant improvement from an operating loss of $30 million in the prior year, primarily due to the absence of a $190 million non-cash impairment charge [147]. - Interest expense increased by $8 million in Q3 2025, with a weighted average interest rate of approximately 6.6%, up from 5.8% in Q3 2024 [126]. - Interest expense for the nine months ended September 30, 2025 increased by $14 million due to higher interest rates, with a weighted average interest rate of approximately 6.3% [141]. Taxation - The effective income tax rate for the three months ended September 30, 2025 was 50.0%, compared to a benefit of 3.4% in 2024, driven by lower forecasted pretax book income [128]. - The income tax provision for the nine months ended September 30, 2025 was $28 million, compared to a benefit of $19 million in 2024, reflecting a significant increase in the effective tax rate [144]. Cash Flow and Financial Position - The Company had cash and cash equivalents of approximately $229 million as of September 30, 2025, with cash provided by operating activities decreasing by $243 million to $103 million [154]. - The Company maintains a $1.00 billion senior secured revolving credit facility, with $932 million of availability as of September 30, 2025 [158][159]. - In May 2025, the Company completed the offering of 8.500% senior notes due 2028, using proceeds to fully redeem its 2026 Notes [161]. - The Company was in compliance with all of its debt covenants at September 30, 2025 [163]. Strategic Initiatives - The company is focused on returning to profitable top-line growth through product innovation, distribution expansion, and international market penetration [113]. - The Realignment Plan aims to strengthen front-end commercial capabilities and unlock operational efficiencies, with several changes implemented by the end of 2024 [111]. - The company is committed to improving cash flow efficiency and further deleveraging its balance sheet [113]. Market Challenges - The company continues to face challenges from macroeconomic volatility, inflationary pressures, and shifting consumer preferences [109]. - Changes in foreign currency unfavorably impacted net sales by $32 million, or 1%, for H&CS and $6 million, or less than 1%, for L&D [146][148]. - The Company regularly assesses its cash requirements amid a rapidly changing retail landscape, influenced by inventory control, interest rates, and geopolitical factors [152]. Other Income - The company recorded a pretax gain of approximately $12 million from the sale of its equity interest in a joint venture for about $22 million in August 2025 [120]. - The company realized a pretax gain of $12 million from the sale of its equity interest in a joint venture during the nine months ended September 30, 2025 [143]. Restructuring Costs - Restructuring-related costs for the nine months ended September 30, 2025 were $23 million, down from $40 million in 2024, primarily related to the Realignment Plan [139].

Core Insights - Newell Brands Inc. reported third-quarter results that fell short of expectations, leading to a significant drop in share price by over 31% during intra-day trading [1] Financial Performance - The company reported adjusted earnings of $0.17 per share, slightly below analyst expectations of $0.18 [2] - Revenue decreased by 7.2% year-over-year to $1.8 billion, missing forecasts of $1.88 billion [2] - Core sales declined by 7.4% compared to the previous year [2] Margin Analysis - Gross margin decreased to 34.1% from 34.9%, attributed to higher tariff-related costs [3] - Excluding a one-time $24 million impact from China tariffs, gross margin would have improved by 55 basis points [3] Segment Performance - Home & Commercial Solutions, which includes brands like Rubbermaid and Yankee Candle, experienced a core sales decline of 9.8% [3] - Learning & Development, which includes Sharpie and Paper Mate, reported a 5.6% drop in core sales [3] Future Outlook - The company has lowered its 2025 full-year outlook, now expecting net sales to decline by 4.5% to 5.0% and normalized EPS to be between $0.56 and $0.60 [4] - For the fourth quarter, Newell forecasts a revenue decline of 1% to 4% [4]

Core Insights - Amazon shares surged to a record high following better-than-expected earnings, contributing to the rise of major U.S. equity indexes including the Dow, S&P 500, and Nasdaq [1][5] Company Performance - Amazon was a top performer in the S&P 500, leading gains in both the Dow and Nasdaq, with significant growth attributed to its Amazon Web Services segment [2] - Reddit's shares increased sharply after reporting quarterly earnings that exceeded analysts' expectations, driven by a rise in user numbers, particularly internationally [2] - Western Digital experienced a boost in its stock price due to strong demand for data storage hardware supporting artificial intelligence, resulting in better-than-expected quarterly results [3] Market Reactions - Newell Brands saw its shares decline after lowering its full-year outlook, which was partially influenced by tariffs [3][5] - Dexcom's shares fell amid concerns regarding its future outlook and the accuracy of its G7 glucose monitoring system [4]

Core Viewpoint - Newell Brands has made significant strides in re-shoring the production of Sharpie markers to the U.S., investing $2 billion in manufacturing efficiency, but faced disappointing Q3 earnings results leading to a sharp decline in stock price [1][2][4]. Group 1: Manufacturing and Production - Newell Brands has successfully re-shored nearly all Sharpie production to the U.S., specifically in Tennessee, producing all 97 colors domestically [1]. - The company invested $2 billion in manufacturing efficiency to facilitate this transition [1]. Group 2: Financial Performance - In Q3, Newell reported adjusted earnings of $0.17 per share, missing Wall Street's expectation of $0.18, and revenue of $1.8 billion, below the anticipated $1.9 billion [2][5]. - Sales declined by 7% year over year, and gross profit margin decreased by 80 basis points, although operating profit margin improved [5]. - The company earned only $0.05 per share on a GAAP basis, indicating that the adjusted profit was not reflective of actual performance [5]. Group 3: Future Outlook - CEO Chris Peterson expressed optimism for improvement in both domestic and international markets, projecting Q4 sales declines to be between 1% and 4% [6]. - Non-GAAP earnings for Q4 are expected to range from $0.16 to $0.20, which still falls short of the $0.27 that Wall Street anticipates [6][8].

Core Viewpoint - Newell Brands (NWL) is experiencing challenges due to the K-shaped economy, where lower-end consumers are struggling while wealthier households are performing well [1] Company Analysis - Newell Brands is identified as a victim of the K-shaped economic recovery, reflecting broader trends affecting consumer behavior and corporate performance [1] Economic Context - The K-shaped economy suggests a divergence in economic recovery, with lower-income consumers facing difficulties, impacting companies like Newell Brands [1]

Core Viewpoint - Newell Brands (NWL) is experiencing challenges due to the K-shaped economy, where lower-end consumers are struggling while wealthier households are performing well [1] Company Analysis - Newell Brands is identified as a victim of the K-shaped economic recovery, reflecting broader trends affecting consumer behavior and corporate performance [1] Economic Context - The K-shaped economy suggests a divergence in economic recovery, with lower-income consumers facing difficulties, impacting companies like Newell Brands [1]

Financial Data and Key Metrics Changes - Third-quarter net sales decreased by 7.2%, and core sales declined by 7.4%, primarily due to unfavorable macroeconomic conditions [17] - Normalized gross margin was 34.5%, down 90 basis points year over year, impacted by tariff costs and inflation [17][18] - Normalized operating margin was 8.9%, a decrease of 60 basis points compared to the previous year [18] - Year-to-date operating cash flow was $103 million, significantly lower than $346 million in the previous year [19] Business Line Data and Key Metrics Changes - The Writing segment performed well during the back-to-school season, remaining flat overall, but expected stronger results were not realized due to competitor pricing delays [8][9] - The Baby segment gained market share despite price increases, with three rounds of pricing taken to offset inflation and tariffs [10] - The Home and Commercial segment faced challenges, particularly in the Kitchen category, which was affected by macroeconomic softness in key markets [11][12] - The Outdoor and Recreation business showed signs of improvement, with third-quarter sales flat compared to the previous year [12] Market Data and Key Metrics Changes - International sales, which account for approximately 40% of total sales, are expected to return to growth in the fourth quarter after a slowdown in Brazil and Argentina [6] - Brazil's sales declined by 25% in the third quarter, a significant drop from previous growth rates [33] - Retailer inventory adjustments were largely one-time events, with expectations for stabilization moving forward [6][65] Company Strategy and Development Direction - The company is focused on productivity and overhead cost savings, with plans to increase promotional activities to restore price competitiveness [4][10] - A strong innovation pipeline for 2026 is anticipated, with over 20 new product launches planned [48] - The company aims to broaden distribution and enhance product innovation while navigating the challenges posed by tariffs and macroeconomic conditions [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, including trade disruptions and tariff costs, but expressed confidence in the company's turnaround strategy [4][16] - The company expects sequential improvement in normalized profitability and cash flow as tariff-related costs subside [15][26] - A more conservative view of consumer demand for the fourth quarter has been adopted, with expectations for a 3% decline in aggregate categories [14][15] Other Important Information - The balance sheet remains solid, with net debt at $4.5 billion, down from the prior year [14] - Advertising and promotion spending reached its highest rate as a percentage of sales in nearly a decade, reflecting a commitment to brand building [13] Q&A Session Questions and Answers Question: Can you discuss the organic sales standpoint and the visibility into trends? - Management noted that retailer inventory reductions were more significant than expected, particularly in September, impacting sales [32][34] Question: What is the impact of aggressive pricing actions across categories? - Management indicated that while pricing in the Baby category was successful, the Kitchen segment faced challenges due to competitors not following pricing increases [36][37] Question: How does the company view the inventory destocking and pricing in international markets? - Management expressed confidence that the inventory destocking impact is behind them and noted that pricing adjustments have been made in Brazil and Argentina following recent elections [66][67] Question: What are the expectations for category growth and sales growth looking into 2026? - Management remains optimistic about 2026, citing a strong innovation pipeline and improved distribution as key factors for growth [57][58]

Core Insights - Newell Brands reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.18 per share, but showing an increase from $0.16 per share a year ago, resulting in an earnings surprise of -5.56% [1] - The company posted revenues of $1.81 billion for the quarter ended September 2025, which was 4.56% below the Zacks Consensus Estimate and a decrease from $1.95 billion year-over-year [2] - Newell Brands has underperformed the market, with shares down approximately 52.6% year-to-date compared to a 16% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $1.98 billion, and for the current fiscal year, it is $0.67 on revenues of $7.37 billion [7] - The estimate revisions trend for Newell Brands was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Consumer Products - Staples industry, to which Newell Brands belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]