Why Newell Brands Stock Just Crashed

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].