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NEW YORK - Newell Brands Inc. (NASDAQ:NWL) reported first quarter results that beat revenue expectations but showed continued pressure on profits on Wednesday.
The company’s shares slipped -1.35% in premarket trading following the release.
The consumer goods company posted Q1 revenue of $1.6 billion, surpassing analyst estimates of $1.54 billion. However, adjusted earnings per share came in at a loss of $0.01, though this was better than the $0.06 loss per share analysts had forecast.
Newell Brands saw core sales decline 2.1% year-over-year, an improvement from recent quarters but still reflecting challenges in the consumer environment. The company’s Home and Commercial Solutions segment, its largest by revenue, experienced a 5% drop in core sales.
"We had strong results in the first quarter with core sales growth, operating margin and earnings per share all in-line or better than expectations," said CEO Chris Peterson. He noted the company remains focused on improving business fundamentals in a "dynamic environment."
Gross margin expanded to 32.5% on an adjusted basis, up from 31% in the prior year period, marking the seventh straight quarter of year-over-year improvement. However, normalized operating margin contracted slightly to 4.5% from 4.8% last year.
For the second quarter, Newell Brands expects net sales to decline 3-5% year-over-year. The company maintained its full-year 2025 outlook for net sales, normalized operating margin and normalized EPS.
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