Newell Brands shares slide as company forecasts 2024 net sales decline
Newell Brands (NWL) shares plunged 16% Friday on the back of its latest quarterly results, which saw sales fall despite topping consensus expectations.
The company reported fourth-quarter earnings of $0.22, $0.05 better than the analyst estimate of $0.17. At the same time, revenue for the quarter came in at $2.08 billion, down 9.1% year-on-year but above the consensus estimate of $1.98 billion.
The company said the sales decline reflected a core sales decrease of 9.3%, as well as the impact of category exits and favorable foreign exchange.
«We remain confident that despite a challenging macro-economic backdrop, the significant investments we are making to augment our core capabilities and accelerate our business transformation will allow us to fully operationalize our new corporate strategy and strengthen the company's performance going forward,» said Mark Erceg, Newell Brands CFO.
For Q1, NWL sees net sales declining between 10% and 8%, with a normalized loss per share between ($0.09) and ($0.05). For FY2024, net sales are expected to decline between 8% and 5%, while the company expects to report earnings of $0.52 to $0.62 per share.
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