Newell Brands (NASDAQ:NWL) Posts Earnings Results, Hits Expectations

Key Points

• Newell Brands met earnings expectations: Third-quarter EPS was $0.20, up from $0.17 a year earlier, while revenue rose 3.7% year over year to $1.87 billion, slightly exceeding estimates.
• Margins and outlook improved: Normalized gross and operating margins expanded, and the company raised its full-year sales-growth forecast to 2%-3% while tightening EPS guidance to $0.74-$0.76.
• Inflation and cash flow remain concerns: Newell increased its estimated 2026 input-cost inflation impact to $220 million and cut operating cash-flow guidance to about $150 million, citing pension-related items and reduced receivables factoring.

Newell Brands (NASDAQ:NWL - Get Free Report) released its earnings results on Friday. The company reported $0.20 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.20, FiscalAI reports. Newell Brands had a positive return on equity of 12.31% and a negative net margin of 3.05%. The company had revenue of $1.87 billion during the quarter, compared to analyst estimates of $1.86 billion. During the same quarter in the prior year, the company earned $0.17 earnings per share. The company's revenue for the quarter was up 3.7% on a year-over-year basis.

Here are the key takeaways from Newell Brands' conference call:

• Sales growth accelerated: Third-quarter net sales rose 3.7% and core sales increased 3.3%, exceeding guidance and marking Newell’s second consecutive quarter of year-over-year core sales growth. Growth was broad-based across brands, businesses, geographies and market share.
• Margins expanded despite inflation: Normalized gross margin increased 70 basis points to 35.2%, while normalized operating margin rose 90 basis points to 9.8%; normalized EPS increased to $0.20 from $0.17. Productivity savings, higher sales and overhead discipline offset significant cost pressures.
• Full-year sales outlook was raised: Newell now expects 2026 net sales growth of 2%-3% and core sales growth of 1%-2%, while maintaining its normalized operating margin outlook of 10%-10.4% and tightening EPS guidance to $0.74-$0.76. Management expects positive sales growth again in the fourth quarter.
• Inflation remains a substantial headwind: The company raised its estimated 2026 input-cost inflation impact to $220 million, up from an initial $100 million estimate, with pressure from transportation, resins, finished goods, labor and other commodities. Newell expects another $150 million of inflation in 2027 and plans modest, selective pricing actions.
• Cash flow guidance fell due to non-operational items: Full-year operating cash flow is now expected to be approximately $150 million versus a prior $400 million target, primarily because of pension-related accounting treatment and reduced receivables factoring. Management said underlying cash generation remains on track, expects leverage below 4.5 times at year-end and continues to target deleveraging in 2027.

Newell Brands Trading Up 2.5%

NASDAQ NWL traded up $0.12 during trading hours on Friday, reaching $5.21. The company's stock had a trading volume of 9,460,144 shares, compared to its average volume of 7,577,209. The stock has a market cap of $2.22 billion, a P/E ratio of -9.82, a P/E/G ratio of 1.29 and a beta of 0.88. The firm has a fifty day simple moving average of $5.69 and a 200-day simple moving average of $4.83. The company has a debt-to-equity ratio of 1.85, a current ratio of 1.11 and a quick ratio of 0.59. Newell Brands has a 52 week low of $3.07 and a 52 week high of $7.13.

Newell Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were given a dividend of $0.07 per share. The ex-dividend date was Monday, August 31st. This represents a $0.28 dividend on an annualized basis and a yield of 5.4%. Newell Brands's payout ratio is currently -52.83%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Wall Street Zen raised Newell Brands from a "buy" rating to a "strong-buy" rating in a research report on Saturday, October 17th. Zacks Research raised Newell Brands from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 2nd. Citigroup boosted their price target on Newell Brands from $5.50 to $6.00 and gave the company a "neutral" rating in a research note on Tuesday, August 4th. Weiss Ratings lowered Newell Brands from a "sell (d)" rating to a "sell (d-)" rating in a research report on Thursday, October 8th. Finally, Morgan Stanley reiterated an "underweight" rating and set a $5.75 target price on shares of Newell Brands in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $6.66.

Insiders Place Their Bets

In other news, insider Bradford Turner sold 100,000 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $6.16, for a total transaction of $616,000.00. Following the transaction, the insider owned 433,398 shares in the company, valued at approximately $2,669,731.68. This represents a 18.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.64% of the company's stock.

More Newell Brands News

Here are the key news stories impacting Newell Brands this week:

• Positive Sentiment: Newell Brands reported adjusted earnings of $0.20 per share, matching estimates and improving from $0.17 a year earlier. Revenue rose 3.7% year over year to $1.87 billion, slightly exceeding the $1.86 billion consensus estimate. NWL Q3 Earnings Meet Estimates, Sales Beat on Broad-Based Growth
• Positive Sentiment: Management said growth was broad-based, with both U.S. and international operations expanding, four of six businesses growing and seven of the company’s top 10 brands gaining sales. Productivity initiatives and margin expansion also supported the quarter.
• Positive Sentiment: The company raised its 2026 sales outlook, signaling greater confidence that its growth and cost-saving measures can continue. Newell Brands Announces Third Quarter 2026 Results
• Neutral Sentiment: Unusually heavy options activity preceded the report, with traders purchasing 63,054 call options—about 4,043% above typical volume. This may reflect bullish speculation but does not guarantee sustained buying.
• Neutral Sentiment: RBC Capital assigned Newell Brands a “Hold” rating, suggesting limited conviction that the current valuation offers a clear catalyst. Newell Brands Gets a Hold from RBC Capital
• Negative Sentiment: Despite higher sales and cost savings, Newell Brands swung to a reported net loss as inflation was steeper than expected. The company’s negative net margin underscores continued profitability and execution risks. Newell Brands Swings to Loss Despite Higher Sales

About Newell Brands

Newell Brands Inc is a global consumer products company that designs, manufactures and markets products used in homes, workplaces and outdoor settings. Its portfolio includes well-known brands such as Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Crock-Pot, Mr. Coffee, FoodSaver, Calphalon, Elmer's and Sistema.

The company's products span food and home storage, cookware and small kitchen appliances, writing instruments and other learning supplies, baby and parenting products, outdoor and recreation equipment, home fragrance, and commercial products.

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