Core Insights - Newell Brands Inc. (NWL) reported a narrower-than-expected loss per share of one cent for Q1 2025, compared to the Zacks Consensus Estimate of a loss of seven cents per share, although both metrics declined year over year [1][2] - Net sales decreased by 5.3% year over year to $1.6 billion, surpassing the consensus estimate of $1.5 billion, with core sales falling by 2.1% [2][3] - The normalized gross margin improved by 150 basis points to 32.5%, marking the seventh consecutive quarter of year-over-year growth, while the normalized operating margin decreased by 30 basis points to 4.5% [3] Financial Performance - Normalized EBITDA for Q1 2025 was $136 million, down from $152 million in the same quarter last year, with a model prediction of a 33.6% decline in adjusted EBITDA [3] - NWL's shares fell by 3.3% during trading hours due to disappointing Q1 results and tariff concerns, with a significant 47.5% decline over the past three months compared to a 1% growth in the industry [4] Segment Performance - The Home & Commercial Solutions segment reported net sales of $812 million, a 9.1% decrease year over year, with core sales down 5% due to declines in various business areas [5] - The Learning and Development segment saw net sales increase by 2.3% to $572 million, with core sales growing by 4.2%, offsetting foreign exchange impacts [6] - The Outdoor and Recreation segment's net sales fell by 9.5% to $182 million, with core sales down 7.1%, although it exceeded the estimate of $176.5 million [7] Financial Position - At the end of Q1 2025, NWL had cash and cash equivalents of $233 million, long-term debt of $4.5 billion, and total outstanding debt of $4.9 billion, with shareholders' equity at $2.7 billion [8] - The company utilized $213 million in cash from operating activities during the quarter [8] Outlook - Management revised the core sales and operating cash flow outlook for 2025, factoring in various tariffs, including a 20% IEEPA tariff on China and other global tariffs [9] - If the 125% tariff on China remains in effect, it could reduce 2025 normalized EPS by nearly 20 cents, although mitigating efforts may halve this impact [10] - The company anticipates a sales decline of 2-4% year over year, with core sales expected to decrease by 1-3% [11] - For Q2 2025, net sales are projected to decline by 3-5%, with normalized EPS expected to be in the range of 21-24 cents, down from 36 cents in the previous year [12]

Core Viewpoint - J.P. Morgan analysts indicate that Perrigo Company plc's first-quarter 2025 earnings will be significantly influenced by the potential impact of tariffs, which could affect near-term earnings [1][4]. Group 1: Earnings Forecast - Analysts project adjusted earnings of 55 cents per share and sales of $1.09 billion for Perrigo [1]. - The company is expected to face a low to mid-single-digit impact on global cost of goods sold (COGS) on an annualized basis due to tariffs [2]. Group 2: Business Impact - The oral care and infant formula segments are particularly affected, with sourcing from China and India [3]. - While the company aims to mitigate the impact through supply chain efficiencies and price increases, challenges remain in predicting short-term effects on earnings [3]. Group 3: Market Reaction - Perrigo's stock has declined by 4.70%, trading at $24.13 [4]. - The company has historically struggled to pass on price increases in a timely manner, making it difficult to absorb rising costs due to lower profit margins compared to peers [5].