NASDAQ$NWL

Newell Brands Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Second quarter 2023 results announced, with net sales and core sales declining and operating cash flow improving.

Newell Brands reported a decrease in net sales by 13% and core sales by 11.9% in the second quarter of 2023. Despite top-line pressure, operating cash flow improved significantly, and the company is investing in capability building and brand support.

  • Net sales were $2.2 billion, a 13.0 percent decline compared with the prior year period.
  • Core sales declined 11.9 percent compared with the prior year period.
  • Reported diluted earnings per share were $0.04 compared with $0.48 in the prior year period.
  • Year-to-date operating cash flow was $277 million compared with outflow of $450 million in the prior year period.

Headline financials

Total Revenue

$2.2B

Previous: $2.53B-13.0%
EPS (adj)

$0.24

Previous: $0.57-57.9%
Normalized Op Margin

9.1%

No prior period
Free Cash Flow

$18M

Previous: $204M-91.2%
Net Income

$18M

Previous: $204M-91.2%
Operating Income

$120M

Previous: $317M-62.1%
Gross Profit

$629M

Previous: $825M-23.8%
Cash & Equivalents

$317M

Previous: $323M-1.9%
Total Assets

$13B

Previous: $14.4B-9.9%
Stock-Based Comp

$9M

Previous: $9M+0.0%

Revenue & EPS history

Newell Brands · Revenue · Quarterly

$2.2B

Q2 2023-13%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Newell Brands · $2.2B total across 3 segments · Q2 2023

  • Home & Commercial
    $1.06B
  • Learning & Dev
    $813M-6.0%
  • Outdoor & Rec
    $333M-22.0%

Forward guidance

The company provided outlook for Q3 2023 and updated full year 2023 outlook, expecting net sales of $2.11 to $2.16 billion for Q3 and $8.2 to $8.34 billion for the full year, with normalized EPS of $0.20 to $0.24 for Q3 and $0.80 to $0.90 for the full year. Operating cash flow for the full year is expected to be in the range of $700 million to $900 million.

Tailwinds

  • Company expects to deliver operating cash flow in the range of $700 million to $900 million for full year 2023.
  • Company expects Q3 2023 Net Sales between $2.11 to $2.16 billion.
  • Company expects Q3 2023 Normalized EPS between $0.20 to $0.24.
  • Company expects full year 2023 Net Sales between $8.2 to $8.34 billion.
  • Company expects full year 2023 Normalized EPS between $0.80 to $0.90.

Headwinds

  • Company expects core sales to decline 7% to 5% for Q3 2023.
  • Company expects core sales to decline 12% to 10% for full year 2023.
  • Company expects Normalized Operating Margin between 8.5% to 9.4% for Q3 2023.
  • Company expects Normalized Operating Margin between 7.8% to 8.2% for full year 2023.
  • Consumers continue to wrestle with elevated levels of core inflation and the resumption of student loan repayments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-3.0%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+38.8%

Q2 2024

Best reaction

-31.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%+13.2%-16.9%
Q4 2025+2.4%-0.2%-6.2%
Q3 2025-31.3%-31.8%-22.7%
Q1 2025-7.5%-1.4%+2.5%
Q4 2024-26.4%-26.8%-30.3%
Q3 2024+32.7%+24.9%+27.0%
Q2 2024+38.8%+35.5%+16.7%
Q1 2024+16.0%+11.7%+13.3%
Q4 2023-13.7%-9.9%-7.0%
Q3 2023-5.1%-10.4%+1.4%
Q2 2023+8.9%+6.9%+0.0%
Q1 2023-9.0%-15.7%-26.5%
Q4 2022+1.1%+2.8%-16.2%
Q3 2022-11.9%-17.9%-14.8%
Q2 2022-2.0%-4.3%-5.5%
Q1 2022-2.6%+1.1%-5.0%
Q4 2021+13.5%+18.4%-1.7%
Q3 2021+8.2%+10.7%+3.2%
Q2 2021-8.7%-8.8%-6.2%
Q1 2021+3.0%+5.1%+6.3%
Q4 2020-8.7%-7.6%-2.5%
Q3 2020+12.4%+12.2%+25.3%
Q2 2020-7.5%-5.4%-8.5%
Q1 2020-10.7%-15.8%-5.3%
Q4 2019+2.6%+0.2%-32.1%
Q3 2019+10.0%+6.1%+1.3%
Q2 2019+12.4%+20.1%+23.6%
Q1 2019+9.1%+6.0%-8.4%
Q4 2018-21.6%-20.9%-28.3%
Q3 2018+20.7%+21.9%+41.4%
Q2 2018-18.4%-21.6%-17.7%
Q1 2018+3.3%+1.0%-13.4%
Q4 2017-0.9%-2.9%+3.7%
Q3 2017-25.0%-25.2%-23.1%
Q2 2017-2.4%-3.5%-6.9%
Q1 2017+14.0%+13.6%+14.1%
Q4 2016-2.9%+0.2%+4.0%
Q3 2016-4.3%-5.1%-3.5%
Q2 2016+9.3%+8.3%+9.1%
Q1 2016+8.7%
Q4 2015+4.0%
Q3 2015+1.0%
Q2 2015+1.6%
Q1 2015+2.8%
Q4 2014-1.1%
Q3 2014-2.6%
Q2 2014+2.7%
Q1 2014-4.2%
Q4 2013-0.5%
Q3 2013+2.7%
Q2 2013-0.7%
Q1 2013+0.4%
Q4 2012-0.7%
Q3 2012+2.7%
Q2 2012+0.5%
Q1 2012+1.3%
Q4 2011+1.2%
Q3 2011+1.1%
Q2 2011-8.1%
Q1 2010-0.8%
Q1 2011-0.6%
Q4 2008-1.7%
Q4 2010-1.7%
Q3 2010-1.4%
Q3 2009-1.4%
Q4 2009+0.8%
Q2 2009+0.8%
Q2 2010+0.8%

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