Published on 12 Feb 2024 on Zacks via Yahoo Finance
Newell Brands Inc. NWL posted fourth-quarter 2023 results, wherein both sales and earnings beat their respective Zacks Consensus Estimate. The company’s normalized earnings were 22 cents per share, up 37.5% from the year-ago quarter’s level of 16 cents. Also, the figure beat the bottom-line estimate of 17 cents.Net sales declined 9.1% year over year to $2.1 billion on lower core sales and impacts of category exits. Nonetheless, the metric exceeded the consensus estimate of $2 billion. This was somewhat offset by positive currency impacts. Also, core sales fell 9.3% year over year.The normalized gross margin expanded 570 bps year over year to 32.3%. The normalized operating margin increased 280 bps year over year to 7.7% in the reported quarter.In the past three months, shares of this currently Zacks Rank #2 (Buy) company have risen 3.7% compared with the industry’s 2.6% growth.
Segmental Details
Net sales in the Home & Commercial Solutions segment were $1.3 billion in the fourth quarter, down 7.1% from the year-ago period. The metric beat the consensus mark of $1.2 billion. Core sales declined 8.2% year over year, with sluggishness in each of the three businesses, Kitchen, Home Fragrance and Commercial. Also, the impacts of certain category exits acted as deterrents.