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

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

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 Price Performance

Shares of NWL traded up $0.12 during midday trading on Friday, hitting $5.21. 9,460,144 shares of the company traded hands, compared to its average volume of 7,577,209. The stock has a market cap of $2.22 billion, a price-to-earnings ratio of -9.82, a PEG ratio of 1.29 and a beta of 0.88. The firm has a 50 day moving average of $5.69 and a 200-day moving average of $4.83. The company has a debt-to-equity ratio of 1.85, a quick ratio of 0.59 and a current ratio of 1.11. Newell Brands has a 52 week low of $3.07 and a 52 week high of $7.13.

Newell Brands Announces Dividend

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

Analyst Ratings Changes

A number of brokerages have recently issued reports on NWL. Wall Street Zen raised Newell Brands from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 17th. Morgan Stanley reiterated an “underweight” rating and issued a $5.75 price objective on shares of Newell Brands in a report on Thursday, August 6th. JPMorgan Chase & Co. raised their target price on shares of Newell Brands from $5.00 to $7.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Zacks Research upgraded shares of Newell Brands from a “hold” rating to a “strong-buy” rating in a report on Friday, October 2nd. Finally, Barclays upped their target price on Newell Brands from $5.00 to $7.00 and gave the stock an “overweight” rating in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Newell Brands has an average rating of “Hold” and a consensus target price of $6.66.

Insider Activity

In other news, insider Bradford Turner sold 100,000 shares of Newell Brands stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $6.16, for a total value of $616,000.00. Following the completion of the transaction, the insider owned 433,398 shares in the company, valued at approximately $2,669,731.68. The trade was a 18.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.64% of the company’s stock.

Key Newell Brands News

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

• Positive Sentiment: Newell Brands reported adjusted earnings of $0.20 per share, matching estimates and improving from $0.17 a year earlier. Revenue rose 3.7% year over year to $1.87 billion, slightly exceeding the $1.86 billion consensus estimate. NWL Q3 Earnings Meet Estimates, Sales Beat on Broad-Based Growth
• Positive Sentiment: Management said growth was broad-based, with both U.S. and international operations expanding, four of six businesses growing and seven of the company’s top 10 brands gaining sales. Productivity initiatives and margin expansion also supported the quarter.
• Positive Sentiment: The company raised its 2026 sales outlook, signaling greater confidence that its growth and cost-saving measures can continue. Newell Brands Announces Third Quarter 2026 Results
• Neutral Sentiment: Unusually heavy options activity preceded the report, with traders purchasing 63,054 call options—about 4,043% above typical volume. This may reflect bullish speculation but does not guarantee sustained buying.
• Neutral Sentiment: RBC Capital assigned Newell Brands a “Hold” rating, suggesting limited conviction that the current valuation offers a clear catalyst. Newell Brands Gets a Hold from RBC Capital
• Negative Sentiment: Despite higher sales and cost savings, Newell Brands swung to a reported net loss as inflation was steeper than expected. The company’s negative net margin underscores continued profitability and execution risks. Newell Brands Swings to Loss Despite Higher Sales

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.