NWL - Newell Brands issues mixed Q1 update soft Q2 guide

2023-04-28 07:59:30 ET

Newell Brands ( NASDAQ: NWL ) shares edged lower in premarket action on Friday after posting a far wider than expected Q1 loss and issuing a light sales guide for Q2.

The Atlanta-based consumer products manufacturer reported a $0.06 per share loss, doubling the loss expected by analysts. Meanwhile, a 25% decline in revenue year over year narrowly edged expectations.

Outgoing CEO Ravi Saligram stressed the implementation of the Project Phoenix turnaround plan for the company. He is expected to be succeeded by current president Chris Peterson in mid-May.

“First quarter results were relatively in-line with our expectations. We made meaningful progress implementing Project Phoenix and operationalizing the distribution and transportation benefits associated with Project Ovid,” Peterson commented. “While we continue to face a very challenging macroeconomic environment, I am confident that our portfolio of leading consumer brands and talented employees will allow us to further strengthen the company in the years ahead, as we sharpen our strategy, optimize our cost structure and fully leverage the scale of the company."

CFO Mark Erceg added that the company is maintaining full-year forecasts despite pressure on target consumers.

“We now expect to be towards the low end of the range since consumer discretionary spending in our categories remains under pressure making us incrementally more cautious on the overall operating environment,” Erceg warned. “Despite these persistent near term challenges, we remain committed to improving the company's financial performance and creating sustainable shareholder value for our stakeholders.”

Management expects net sales to be toward the low-end of a range between $8.4B and $8.6B and EPS also on the lower end within a range from $0.95 to $1.08.

Core sales are expected to drop between 14% and 10% in Q2 while normalized EPS are expected to range from $0.10 to $0.18. The Q2 consensus expectations reflected a forecast of 13.24% decline in revenue and $0.38 in earnings per share.

Shares of Newell Brands ( NWL ) dipped 1.2% in premarket trading.

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