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Newell Brands Affirms 2025 Earnings Guidance Amid Sales Decline

Newell Brands has reaffirmed its earnings outlook for 2025 despite expectations of sales declines, forecasting a normalized EPS between $0.70 and $0.76. For Q2, the company anticipates losses while analysts expect declines in revenue. Investors should proceed cautiously.

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AI Rating:   5
Earnings Per Share (EPS): Newell Brands is maintaining its normalized EPS guidance for 2025 to fall within a range of $0.70 to $0.76. This alignment with analyst expectations suggests that consensus remains steady, which can lead to stability in investor confidence. However, the anticipated range at the lower end representing declining earnings may project a cautious market response.

Revenue Growth: The guidance specifies a forecasted net sales decline of 4 to 2 percent with core sales decrease expectations within a similar range. Such a decline signals potential weakness in demand for Newell Brands' consumer goods amidst economic pressures, which could negatively influence investor sentiment.

Second Quarter Outlook: For Q2, the company anticipates a normalized loss of $0.21 to $0.24 per share, indicating substantial financial pressure in the near term. This is significantly below the consensus estimates of $0.32 earnings per share, reflecting a larger-than-expected downturn. Furthermore, expected sales declines ranging from 5 to 3 percent versus analyst expectations of a 3.36 percent drop further emphasizes the struggling performance.

Investor Considerations: Overall, while Newell Brands affirms its guidance, the pressure of declining sales and projected losses in the immediate quarter could lead to a negatively skewed perception by investors. The company's performance closely aligns with broader market trends affecting consumer goods and could warrant a more cautious investment stance in the coming months. Given these factors, investors may want to weigh their positions carefully as continued sales pressure could exacerbate existing concerns within the stock.
Stocks:  NWL