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Key Takeaways
- Newell Brands raised its full-year EPS guidance and posted net income that more than doubled year-over-year.
- The company is in the midst of a restructuring that it expects to generate $65 million to $90 million of annualized savings.
- A 40% Friday jump in the company’s stock has it in the green for 2024.
Newell Brands ( NWL ) beat second-quarter expectations and upgraded its full-year guidance after the company made “significant progress” on its turnaround, sending shares of the Yankee Candle owner up 40% on Friday.
The parent of Crock-Pot, Elmer’s and Sharpie now projects adjusted earnings per share (EPS) of 60 cents to 65 cents in 2024, up from a previous estimate of 52 cents to 62 cents. Newell also narrowed its net sales growth range to declines of between 6% and 7% from 5% to 8%.
Friday’s jump pulled the company’s shares a few points into the green year-to-date, though still well off highs seen in 2021.
“Over the past year we have improved the rate of year over year core sales growth from down 15% in the first half of 2023 to down 9% in the back half of 2023 to down 4.5% in the first half of 2024,” CEO Chris Peterson said on the company’s earnings call.
The company expects its realignment to be “substantially implemented” by the end of 2024 and generate $65 million to $90 million in annualized savings. The company reported less outstanding debt and more cash or equivalents year-over-year.
“We are making significant progress,” Peterson said in a statement. “Since implementing the new corporate strategy, we have taken decisive actions that have improved the company’s top line trajectory, driven significant gross and operating margin expansion, delevered the balance sheet and improved cash flow performance”
In the second quarter, Newell posted net income of $45 million, or 11 cents per share, more than double the $18 million, or 4 cents per share, it reported a year earlier. Net sales fell nearly 8% to $2 billion.