Newell Brands Inc (NASDAQ:NWL) reported a third-quarter FY23 sales decline of 9.1% year-on-year to $2.05 billion, missing the analyst consensus estimate of $2.12 billion.
The revenue reflects a core sales decrease of 9.2% and a slight headwind from category exits, partially offset by the impact of favorable foreign exchange.
Adjusted EPS of $0.39 beat the consensus estimate of $0.23.
Gross profit declined 5.6% to $621 million, and the gross margin for the quarter expanded 110 basis points to 30.3%.
The company reported an operating loss of $(159) million versus an operating income of $40 million.
The company held $396 million in cash and equivalents as of September 30, 2023. Operating cash flow year-to-date totaled $679 million versus $567 million last year.
Year-to-date through the third quarter 2023, the company incurred restructuring and related charges of $78 million and realized savings of $101 million related to Project Phoenix, which was announced in January 2023.
Mark Erceg, Newell Brands Chief Financial Officer, said, “we expect gross margin will continue to improve during the fourth quarter and we have raised our cash flow outlook for the year, even as top line expectations and earnings per share estimates have been tempered.”
Outlook: NWL slashed FY23 revenue outlook from $8.2 billion – $8.34 billion to $8.02 billion – $8.09 billion versus the $8.3 billion estimate.
NWL also cut the FY23 Adjusted EPS outlook from $0.80 – $0.90 to $0.72 – $0.77 against the consensus of $0.84.
Newell expects Q4 normalized EPS of $0.15 – $0.20 against an estimate of $0.44. Sales of $1.96 billion – $2.03 billion versus the Street view of $2.17 billion.
Price Action: NWL shares traded lower by 3.18% at $7.16 on the last check Friday.
