Newell Brands Inc. (NWL) saw a 1.4% increase in its stock during premarket trading on Friday following a strong performance in revenue and adjusted profit, surpassing analyst expectations. The household products manufacturer reported a profit of $18 million, or 4 cents per share, for the three months ended June 30, compared to $199 million, or 48 cents per share, in the same period last year.
Improved Earnings and Revenue
Newell's second-quarter adjusted earnings declined to 24 cents per share from 56 cents per share in the previous year. Despite this drop, it exceeded analysts' estimates of 13 cents per share, according to data compiled by FactSet. Moreover, the company's revenue for the second quarter decreased by 13%, reaching $2.2 billion. However, this still outperformed the estimated revenue of $2.15 billion set by analysts.
Looking ahead to the third quarter, Newell anticipates adjusted earnings between 20 cents and 24 cents per share. This forecast fell below the analyst target of 45 cents per share. Additionally, Newell adjusted its 2023 revenue projection to a range of $8.2 billion to $8.34 billion, falling short of the Wall Street target of $8.45 billion. For earnings in 2023, Newell expects to earn 80 cents to 90 cents per share, while analysts currently project 95 cents per share.
Newell Brands Inc., despite facing challenges in its financial performance, remains optimistic for the future and continues to focus on delivering value to its shareholders.