Newell Brands ( NASDAQ: NWL ) tracked in premarket trading on Friday after the Atlanta-based company topped estimates with its Q3 earnings report and set favorable guidance despite pointing to a tough operating environment with retailers rightsizing their inventory positions.
Core sales declined 10.8% during the quarter compared with only one of seven business units increasing core sales compared to a year ago.
On the balance sheet, the company's leverage ratio was 3.9X at the end of Q3 vs. 3.1X in the prior year period and 3.0X at the end of 2021.
CFO update: "During the third quarter we enhanced Newell's financial flexibility and maintained strong cost discipline, as results were impacted by top line deleveraging. We remain laser focused on aligning the company's cost structure with the macro backdrop, reducing inventory and strengthening cash flow, while continuing to invest in core capabilities."
For Q4, the company sees sales of $2.18B to $2.26B vs. $2.25B consensus and EPS of $0.09 to $0.14 vs. $0.22 consensus.
For the full year, Newell expects sales of $9.35B to $9.43B vs. $9.43B consensus and EPS Of $1.56 to $1.61 vs. $1.61 consensus.
Shares of Newell Brands ( NWL ) rose 1.15% premarket to $15.85 after the earnings results topped expectations. Heading into the report, the last 11 EPS revisions were to the downside.
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Newell Brands gains after topping some beaten-down estimates