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Key Takeaways
- Newell Brands reported better-than-expected first-quarter results Friday as the company said its turnaround plan is working, and shares soared.
- The maker of consumer and commercial products posted a quarterly loss of 2 cents per share, narrowed from a loss of 25 cents per share in the prior-year period.
- Chief executive Chris Peterson pointed to the “decisive actions” the company has taken to execute its new strategy.
Newell Brands ( NWL ) shares surged in intraday trading Friday as the consumer and commercial products maker pointed to the success of its turnaround plan for better-than-expected results.
The owner of Rubbermaid, Sharpie, and other well-known brands posted a first-quarter loss of 2 cents per share, narrowed from a loss of 25 cents per share in the prior-year period. On an adjusted basis it broke even, while analysts were expecting a loss.
While revenue fell 8.4% year-over-year to $1.65 billion, it was better than estimates. Gross margin was 30.5%, up from 26.7% a year earlier.
Chief Executive Officer (CEO ) Chris Peterson credited the performance to “decisive actions we’ve taken as part of our new strategy,” which he said have “led to excellent progress on the major operational and financial priorities for this year.”
Peterson noted that Newell Brands is focusing on “disproportionately investing in innovation, brand building and go-to-market excellence in our largest and most profitable brands and markets.”
The company affirmed its full-year normalized profit outlook of $0.52 to $0.62 per share, with revenue declining 5% to 8%.
Despite today’s advance of 10% to $7.64 as of 1:41 p.m. ET Friday, shares of Newell Brands are about 12% lower for the year.