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Yankee Candle Parent Newell Stock Rises on Earnings Beat

Newell Brands traded higher after beating third-quarter earnings estimates amid inflation pressure and supply chain bottlenecks.

Shares of Newell Brands  (NWL) - Get Newell Brands Inc Report rose Friday after the consumer-brands giant reported better-than-expected earnings and raised guidance for the full year.

Net income fell to $190 million, or 44 cents a share, from $304 million, or 71 cents a share, in the year-earlier quarter. Non-GAAP earnings stood at 54 cents a share.

Revenue rose 3.3% to $2.78 billion from $2.69 billion in the year-earlier period.

Analysts surveyed by FactSet were expecting non-GAAP earnings of 50 cents a share on revenue of $2.78 billion.

Shares of the Atlanta company -- parent of prominent brands including Rubbermaid kitchen-storage products, Sharpie markers, Dymo labeling products, Coleman camping equipment,, Yankee Candle fragrance and decor products, and Oster, Sunbeam and Mr. Coffee appliances -- at last check rose 3.1% to $22.44.

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"Strong consumer demand, supported by innovation, fueled core sales growth of 3.2%, at the high end of our evergreen target, on top of a difficult year-ago comparison of 7.2%,” President and Chief Executive Ravi Saligram said in a statement.

“While we are taking action to address the significant inflationary pressures and supply chain bottlenecks, we are also advancing our strategic priorities, by continuing to reduce complexity, capitalizing on the international opportunity, and building operational excellence," he said.

Operating-profit margin narrowed to 10.1% from 13.4% in the prior-year period, reflecting largely a significant headwind from inflation and an increase in advertising and promotion expense, Newell said.

For the fourth quarter Newell expects adjusted profit between 29 cents and 33 cents, shy of the FactSet consensus estimate, 37 cents.

The company raised its revenue outlook for the full year by 2.8% on the low end and 1% on the high end, estimating that the top line would reach between $10.38 billion and $10.46 billion. Analysts surveyed by FactSet were estimating $10.37 billion.