Newell Brands (NASDAQ:NWL) Posts Earnings Results, Meets Estimates

Newell Brands (NASDAQ:NWL) issued its quarterly earnings results on Friday. The company reported $0.20 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.20, FiscalAI reports. The firm had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.86 billion. Newell Brands had a positive return on equity of 12.31% and a negative net margin of 3.05%. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.17 EPS.

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

• Sales growth accelerated: Third-quarter net sales rose 3.7% and core sales increased 3.3%, exceeding guidance and marking Newell’s second consecutive quarter of year-over-year core sales growth. Growth was broad-based across brands, businesses, geographies and market share.
• Margins expanded despite inflation: Normalized gross margin increased 70 basis points to 35.2%, while normalized operating margin rose 90 basis points to 9.8%; normalized EPS increased to $0.20 from $0.17. Productivity savings, higher sales and overhead discipline offset significant cost pressures.
• Full-year sales outlook was raised: Newell now expects 2026 net sales growth of 2%-3% and core sales growth of 1%-2%, while maintaining its normalized operating margin outlook of 10%-10.4% and tightening EPS guidance to $0.74-$0.76. Management expects positive sales growth again in the fourth quarter.
• Inflation remains a substantial headwind: The company raised its estimated 2026 input-cost inflation impact to $220 million, up from an initial $100 million estimate, with pressure from transportation, resins, finished goods, labor and other commodities. Newell expects another $150 million of inflation in 2027 and plans modest, selective pricing actions.
• Cash flow guidance fell due to non-operational items: Full-year operating cash flow is now expected to be approximately $150 million versus a prior $400 million target, primarily because of pension-related accounting treatment and reduced receivables factoring. Management said underlying cash generation remains on track, expects leverage below 4.5 times at year-end and continues to target deleveraging in 2027.

Newell Brands Stock Up 2.0%

Shares of NASDAQ:NWL opened at $5.18 on Friday. Newell Brands has a 12-month low of $3.07 and a 12-month high of $7.13. The stock has a market capitalization of $2.21 billion, a P/E ratio of -6.73, a price-to-earnings-growth ratio of 1.28 and a beta of 0.88. The stock’s 50-day moving average price is $5.68 and its 200-day moving average price is $4.83. The company has a current ratio of 1.11, a quick ratio of 0.59 and a debt-to-equity ratio of 1.85.

Newell Brands Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st were paid a $0.07 dividend. The ex-dividend date was Monday, August 31st. This represents a $0.28 annualized dividend and a yield of 5.4%. Newell Brands’s dividend payout ratio (DPR) is currently -52.83%.

Insider Activity

In related news, insider Bradford Turner sold 100,000 shares of the company’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $6.16, for a total value of $616,000.00. Following the completion of the sale, the insider directly owned 433,398 shares of the company’s stock, valued at $2,669,731.68. This represents a 18.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.64% of the stock is owned by company insiders.

Key Newell Brands News

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

• Positive Sentiment: Newell reported revenue of $1.87 billion, exceeding the $1.86 billion analyst estimate and increasing 3.7% from the prior-year quarter. Growth was broad-based across the United States and international markets, with four of six business segments and seven of its top 10 brands posting growth. Newell Brands Announces Third Quarter 2026 Results
• Positive Sentiment: Adjusted earnings were $0.20 per share, matching consensus and improving from $0.17 a year earlier. The company cited productivity gains, cost savings and margin expansion as contributors to the quarter’s performance. NWL Q3 Earnings Meet Estimates, Sales Beat on Broad-Based Growth
• Positive Sentiment: Management raised its 2026 sales outlook, reinforcing investor expectations that the company’s growth recovery and restructuring efforts are gaining traction. Newell Brands Q3 2026 Earnings Call Transcript
• Neutral Sentiment: Unusually heavy options activity preceded the results, with traders purchasing 63,054 call options—roughly 40 times typical volume—indicating elevated speculative interest but not guaranteeing sustained gains.
• Neutral Sentiment: RBC Capital Markets maintained a Hold view, suggesting analysts may remain cautious despite the improved operating trends. Newell Brands Gets a Hold from RBC Capital
• Negative Sentiment: Newell swung to a reported net loss as higher inflation more than offset sales gains and cost-saving benefits. The company continues to face profitability pressure, with a negative net margin, even though adjusted EPS met expectations. Newell Brands Swings to Loss Despite Higher Sales

Wall Street Analyst Weigh In

NWL has been the topic of several research reports. Barclays upped their price target on Newell Brands from $5.00 to $7.00 and gave the company an “overweight” rating in a research note on Tuesday, July 21st. Citigroup boosted their price target on shares of Newell Brands from $5.50 to $6.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 4th. JPMorgan Chase & Co. upped their price objective on Newell Brands from $5.00 to $7.00 and gave the stock an “overweight” rating in a research note on Thursday, July 16th. Weiss Ratings cut shares of Newell Brands from a “sell (d)” rating to a “sell (d-)” rating in a research report on Thursday, October 8th. Finally, Zacks Research raised Newell Brands from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Newell Brands currently has a consensus rating of “Hold” and a consensus price target of $6.66.

Newell Brands Company Profile

Newell Brands Inc is a global consumer products company that designs, manufactures and markets products used in homes, workplaces and outdoor settings. Its portfolio includes well-known brands such as Rubbermaid, Sharpie, Graco, Coleman, Yankee Candle, Crock-Pot, Mr. Coffee, FoodSaver, Calphalon, Elmer’s and Sistema.

The company’s products span food and home storage, cookware and small kitchen appliances, writing instruments and other learning supplies, baby and parenting products, outdoor and recreation equipment, home fragrance, and commercial products.