Newell Brands Announces Third Quarter 2024 Financial Results
Newell Brands Inc. (NASDAQ:NWL) reported its third quarter 2024 financial results, highlighting significant progress in its corporate transformation strategy.
Key Financial Metrics
Below is a summary of the company's financial performance, compared with the prior year period, previous quarter, and Wall Street consensus estimates:
| Metric | Q3 2024 | Year-Over-Year (YoY) Change | Consensus Estimates | Comparison to Estimates |
|---|---|---|---|---|
| Total Revenue | $1.9B | -4.9% | $1.96B | Below |
| Earnings Per Share (EPS) | $0.16 | -56.8% | $0.16 | Matches |
| Reported Net Loss | $198M | Improved | Not available | Not applicable |
| Normalized EBITDA | $250M | +14.7% | Not available | Not applicable |
The decrease in total revenue is primarily due to unfavorable foreign exchange impacts and business exits, while the EPS matched estimates, signaling effective cost management and execution against challenging market conditions. The improvements in gross and operating margins demonstrate enhanced productivity and strategic cost reductions.
Revenue Performance by Segment
The table below provides a breakdown of Newell Brands' major segments:
| Segment | Q3 2024 Revenue | YoY Change |
|---|---|---|
| Learning & Development | $717M | +3.3% |
| Home & Commercial Solutions | $1.0B | -9.1% |
| Outdoor & Recreation | $183M | -20.7% |
The Learning & Development segment showed strong gains, primarily driven by core sales growth in the Baby business, offsetting some declines in other segments. Home & Commercial Solutions faced challenges, with only isolated strength in the Commercial unit. Outdoor & Recreation experienced significant declines, impacted by both core sales drop and external challenges.
Key Operational Highlights
- Improved gross margin by 460 basis points year over year.
- Continued deleveraging efforts resulted in reduced debt levels compared to the previous year.
- Significant organizational realignment initiatives are underway, expected to yield substantial cost savings and efficiencies by end of 2024.
Executive Comments
Chris Peterson, CEO, emphasized the ongoing transformation, noting improvements in sales and margin performance amidst a challenging environment. CFO Mark Erceg highlighted productivity and cost-saving measures that have sustained margin improvements over the past five quarters, reinforcing their strategic focus on achieving an investment-grade credit rating.
Dividend and Share Repurchase Program
Details regarding dividends or share repurchase programs were not provided in the release.
Forward Guidance
Newell Brands raised its full-year 2024 outlook for normalized operating margin, EPS, and operating cash flow, reflecting increased confidence in the company's strategic execution and financial discipline.
Stock Price Reaction
Following the release of the earnings report, Newell Brands' stock experienced a positive movement of approximately 4.46%, indicating a favorable market reception of the progress and improved outlook.
Overall, Newell Brands continues to advance its strategic changes, tackling challenges effectively and making strides towards long-term sustainable growth.
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