Newell Brands Swings to Profit and Shares Rise
Newell Brands (NWL) - Get Report shares rose after the consumer-goods group posted better-than-expected quarterly earnings along with a stronger-than-expected outlook.
Shares of the Atlanta company at last check rose 6.1% to $16.82.
Newell swung to a third-quarter profit of $304 million, or 71 cents a share, from a loss of $626 million, or $1.48 a share, in the year-ago period.
Adjusted profit was 84 cents a share, compared with 73 cents a share.
Revenue rose 5.1% to $2.7 billion from $2.57 billion.
A survey of analysts by FactSet produced consensus estimates of third-quarter GAAP earnings of 36 cents a share, or an adjusted 43 cents, on revenue of $2.48 billion.
Sales from the appliances and cookware segment rose 17% to $479 million from $430 million a year earlier, partly offset by the impact of unfavorable foreign exchange.
Broad-based sales growth was "underpinned by strong consumption," and operating margin and cash-flow generation improved significantly, President and Chief Executive Ravi Saligram said in a statement.
The parent of Yankee Candle, Sharpie pens and Elmer’s glue reinstituted its guidance and expects sales of $9.2 billion to $9.3 billion for the full year.
It expects adjusted earnings to range $1.63 to $1.69 a share.
The FactSet survey is looking for full-year adjusted profit of $1.28 a share on revenue of $9.07 billion.
“We are heading into the fourth quarter with a renewed sense of energy as we chase demand in certain high growth categories," Saligram said.
