Newell Brands ( NASDAQ: NWL ) stock fell 4.8% afterhours on Tuesday after the firm slashed its guidance to reflect a more challenging operating and consumer backdrop.
NWL expects 2022 normalized EPS of $1.56-$1.70 vs. prior guidance of $1.79-$1.86. Consensus estimate is $1.83.
2022 net sales are estimated to be $9.37B-$9.58B vs. previous outlook of $9.76B-$9.98B. Consensus estimate is $9.90B.
2022 core sales are projected to fall 2-4% vs. prior guidance of flat to 2% growth.
NWL expects Q3 normalized EPS of $0.46 -$0.51 vs. prior outlook of $0.50-$0.54. Consensus estimate is $0.53.
Q3 net sales are projected to be $2.21B-$2.32B vs. earlier forecast of $2.39B-$2.50B. Consensus estimate is $2.47B.
The firm expects Q3 core sales to fall 8-12% vs. prior outlook of 1-5% decline.
"... we experienced a significantly greater than expected pullback in retailer orders and continued inflationary pressures on the consumer," said NWL CEO Ravi Saligram.
NWL is ramping up its FUEL productivity efforts, closely managing discretionary and overhead spending, optimizing its advertising and promotion expenses, and adjusting demand forecast and supply plans.
Shares of NWL declined ~23% YTD.
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Newell Brands stock falls over 4% afterhours on slashed guidance