By Emily Dattilo
Shares of Newell Brands were sinking after the maker of Rubbermaid storage products and Sharpie pens issued disappointing guidance.
Newell stock fell 28% to $7.02 in trading Friday, putting the shares on track for their largest daily percentage decrease on record, according to Dow Jones Market Data.
For its fourth quarter, the company reported normalized earnings of 16 cents per share, beating Wall Street's call for 14 cents, according to FactSet. Net sales declined 6.1% to $1.949 billion and were below the consensus estimate of $1.961 billion.
For its first quarter, Newell forecasts a loss of 6 cents to a loss of 9 cents per share and expects net sales to decline 5% to 8%. Analysts had penciled in earnings of 3 cents per share.
"While much work remains and the macroeconomic backdrop is still uncertain, we are laser-focused on returning the company to sustainable top-line growth, continuing to drive operating margin improvement ahead of our evergreen target and strengthening the balance sheet," said CEO Chris Peterson in a statement.
For 2025, the company anticipates earnings of 70 cents to 76 cents a share and net sales to drop 2% to 4%. Analysts had anticipated profit of 75 cents per share on flat sales.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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February 07, 2025 11:12 ET (16:12 GMT)
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