Newell Brands (NASDAQ:NWL) Releases Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Newell reported Q1 EPS of -$0.05 versus consensus -$0.09 and revenue of $1.55B, and management raised FY 2026 normalized EPS guidance to $0.56–$0.60 while expecting a return to top‑line growth in Q2.
• Management warned of ongoing cost pressure—about $50M of incremental commodity/transport inflation (with a possible but excluded $120M IEEPA tariff refund)—while Q1 operating cash outflow was $233M and net leverage sits at roughly 5.4x, keeping liquidity and leverage risks elevated.
• The stock jumped ~11.5% intraday to $4.55 on heavy volume; the company also pays a quarterly dividend of $0.07 (annualized yield ~6.2%), though profitability remains weak and analysts' consensus rating is a “Hold” with a $4.92 target.

Newell Brands (NASDAQ:NWL - Get Free Report) posted its earnings results on Friday. The company reported ($0.05) earnings per share for the quarter, beating analysts' consensus estimates of ($0.09) by $0.04, Briefing.com reports. Newell Brands had a negative net margin of 3.96% and a positive return on equity of 9.17%. The firm had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same period last year, the firm posted ($0.01) earnings per share. Newell Brands's revenue for the quarter was down 1.1% compared to the same quarter last year. Newell Brands updated its FY 2026 guidance to 0.560-0.600 EPS and its Q2 2026 guidance to 0.160-0.190 EPS.

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

• Q1 results beat expectations across key metrics — normalized operating margin expanded to 4.8% (up 30 bps), and normalized EPS beat guidance by $0.03, with core sales (-3.5%) improving sequentially.
• Management attributes improvement to a ramped innovation and marketing push — launching 25 Tier 1/2 innovations in 2026, better POS, and distribution gains (six of top 10 brands gained share), and expects a return to top‑line growth in Q2.
• Cost headwinds remain — management now estimates roughly $50 million of incremental commodity and transportation inflation (resin ~60% of that), though recent tariff changes are expected to offset about half the impact; potential $120 million IEEPA tariff refunds are being pursued but are not included in guidance.
• Company raised its full‑year outlook: net sales now expected flat to +2%, core sales -1% to +1%, and normalized EPS increased to $0.56–$0.60; Q2 guide calls for sales flat to +2% and EPS $0.16–$0.19.
• Cash and leverage are mixed — Q1 operating cash outflow was $233M and net leverage ~5.4x, the company expects an incremental $60M one‑time cash benefit from plan termination and aims to reduce leverage ~0.5 turn, but full‑year operating cash is likely toward the lower end of the $350M–$400M range.

Newell Brands Trading Up 11.5%

NWL traded up $0.47 during trading on Friday, reaching $4.55. The company had a trading volume of 14,210,237 shares, compared to its average volume of 5,057,781. The stock has a market cap of $1.93 billion, a P/E ratio of 7.03 and a beta of 1.06. The business has a 50 day simple moving average of $4.01 and a 200-day simple moving average of $4.03. Newell Brands has a 52 week low of $3.07 and a 52 week high of $6.64. The company has a quick ratio of 0.57, a current ratio of 1.07 and a debt-to-equity ratio of 1.90.

Newell Brands Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 27th were given a $0.07 dividend. The ex-dividend date was Friday, February 27th. This represents a $0.28 dividend on an annualized basis and a yield of 6.2%. Newell Brands's dividend payout ratio (DPR) is currently -41.18%.

Analyst Ratings Changes

NWL has been the subject of a number of recent research reports. Canaccord Genuity Group raised their target price on shares of Newell Brands from $8.00 to $9.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Citigroup decreased their price target on Newell Brands from $5.00 to $4.00 and set a "neutral" rating on the stock in a report on Wednesday, April 15th. Royal Bank Of Canada set a $4.00 price target on Newell Brands in a research report on Thursday, April 9th. Deutsche Bank Aktiengesellschaft lowered their price target on Newell Brands from $5.00 to $3.00 and set a "hold" rating for the company in a research report on Monday, March 30th. Finally, UBS Group lowered their price target on Newell Brands from $5.00 to $3.75 and set a "neutral" rating for the company in a research report on Tuesday, April 7th. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $4.92.

Trending Headlines about Newell Brands

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

• Positive Sentiment: Q1 results beat expectations — Newell reported a narrower loss (EPS -$0.05 vs. consensus -$0.09) and revenue of $1.55B that topped estimates, signaling better-than-expected top- and bottom-line execution. Newell Brands' Q1 Loss Narrower Than Expected, Lower Core Sales Hurt
• Positive Sentiment: Management lifted its full‑year sales outlook and reiterated FY EPS guidance of $0.56–$0.60, citing improving point-of-sale trends, pricing and margin gains — a positive signal that the turnaround plan is starting to show momentum. Newell Brands Raises Sales Outlook
• Positive Sentiment: Unusually large options buying — roughly 29,842 call options were bought intraday (a ~1,378% jump vs. normal call volume), indicating bullish trader positioning that can amplify upward price moves.
• Neutral Sentiment: Earnings call detail: management emphasized higher-than-expected consumer demand, investment in innovation and advertising, and segment-level core sales gains — useful for confirming the qualitative drivers behind the beat. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Mixed near-term guidance: Newell set Q2 EPS guidance of $0.160–$0.190 and revenue guidance slightly below Street estimates (Q2 consensus ~ $2.0B; company guided roughly $1.9B–$2.0B), creating disappointment relative to quarterly expectations and leaving short-term upside constrained.
• Negative Sentiment: Profitability and leverage remain issues — the company still posts a negative net margin and carries high leverage (debt/equity ~1.9), which limits multiples and increases sensitivity to any slowdown in sales or margin pressure.

Institutional Trading of Newell Brands

Several institutional investors and hedge funds have recently made changes to their positions in the business. AQR Capital Management LLC boosted its stake in shares of Newell Brands by 197.8% during the fourth quarter. AQR Capital Management LLC now owns 21,166,902 shares of the company's stock valued at $78,741,000 after purchasing an additional 14,059,209 shares during the period. Rubric Capital Management LP purchased a new position in Newell Brands in the 3rd quarter worth about $68,120,000. Squarepoint Ops LLC increased its stake in Newell Brands by 1,568.3% in the 3rd quarter. Squarepoint Ops LLC now owns 3,795,058 shares of the company's stock worth $19,886,000 after buying an additional 3,567,581 shares during the period. Norges Bank purchased a new position in Newell Brands in the 4th quarter worth about $6,696,000. Finally, Jump Financial LLC increased its stake in Newell Brands by 268.1% in the 4th quarter. Jump Financial LLC now owns 2,371,954 shares of the company's stock worth $8,824,000 after buying an additional 1,727,645 shares during the period. 92.50% of the stock is currently owned by institutional investors.

About Newell Brands

Newell Brands Inc, trading on NASDAQ under the ticker NWL, is a global consumer goods company known for its diverse portfolio of household, commercial, and specialty products. Formed through the merger of Newell Rubbermaid and Jarden Corporation in 2016, the company traces its roots back to Newell Manufacturing, which was founded in 1903. Headquartered in Atlanta, Georgia, Newell Brands has built a reputation for widely recognized brands spanning multiple consumer categories.

The company's business activities are organized across several segments, including writing and creative expression, home solutions, commercial products, and outdoor recreation.

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