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Sep 30, 2022
Newell Brands Q3 2022 Earnings Report
Newell Brands' financial results decelerated due to a tough operating environment, retailer inventory adjustments, inflationary pressures, and a stronger dollar.
Key Takeaways
Newell Brands reported a decline in net sales by 19.2% and core sales by 10.8% in Q3 2022. Diluted EPS was $0.07, while normalized diluted EPS was $0.53. The company is focused on aligning its cost structure, reducing inventory, and strengthening cash flow amidst economic uncertainty.
Net sales decreased by 19.2% to $2.3 billion, with core sales declining by 10.8%.
Reported operating margin was 1.6%, impacted by a $148 million non-cash impairment charge.
Reported diluted earnings per share were $0.07, while normalized diluted earnings per share were $0.53.
The company updated its full-year 2022 outlook for net sales to $9.35 billion to $9.43 billion and normalized earnings per share to $1.56 to $1.61.
Revenue by Segment
Forward Guidance
The company provided outlook for Q4 2022 and updated full year 2022 outlook.
Positive Outlook
- Full year 2022 normalized EPS outlook $1.56 to $1.61.
- Upsizing borrowing capacity under the revolving credit facility to $1.5 billion.
- Q4 2022 Net Sales $2.18 to $2.26 billion.
- Refinanced its prior senior unsecured revolving credit facility.
- Maintained strong cost discipline.
Challenges Ahead
- Full year 2022 net sales outlook $9.35 to $9.43 billion.
- Q4 2022 core sales decline 9% to 12%.
- Q4 2022 Normalized Operating Margin 5.1% to 6.5%.
- Full year 2022 core sales decline 3% to 4%.
- For full year 2022, the company currently expects to deliver operating cash flow significantly below its prior range of $400 million to $500 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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