Investors pulled back on Newell Brands (NYSE:NWL) after the Sharpie-maker slashed its full-year sales and profit guidance when handing down its third quarter financial results.
The consumer products company - whose brands include Yankee Candle, Elmer, Oster, Rubbermaid, and Graco – now expects its core sales to decline 13% year-over-year, worse than its prior expectation of a 12% to 10% decline, as inflationary pressures have seen consumers curb their spending.
It forecast sales of $8.02 to $8.09 billion, down from its prior guidance range of $8.2 to $8.34 billion.
It also lowered its earnings per share (EPS) expectation to a range of $0.72 to $0.77 from its earlier guidance of EPS in the range of $0.80 to $0.90.
Newell Brands (NYSE:NWL)’ updated full-year guidance falls short of Wall Street analysts’ expectation of sales of $8.3 billion and EPS of $0.85.
For 3Q, the company reported a 9% year-over-year drop in sales to $2 billion, shy of Street expectations of $2.13 billion.
It beat on earnings, reporting EPS of $0.39 compared to estimates of $0.23.
Newell Brands (NYSE:NWL) shares fell 4.1% to about US$7 late morning on Friday.
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