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Newell Brands Q2 Profit Climbs, Above View; Sees Q3 Results Below Estimates

Consumer goods company Newell Brands, Inc. (NWL) on Friday reported improved profit in the second- quarter, better than analysts' view. However, sales declined in the quarter. The company cut its full-year earnings outlook, citing stronger US dollar recently. Third-quarter as well as full-year outlook stand below consensus estimates.

Net income was $204 million, or $0.49 per share in the second quarter, higher than $197 million, or $0.46 per share, in the prior year period.

Normalized net income, adjusted for special items, was $236 million, or $0.57 per share, compared with $239 million, or $0.56 per share a year ago.

Net sales were $2.5 billion, a 6.5 percent decline compared with the prior year period, primarily impacted by the sale of the CH&S business at the end of the first quarter 2022.

Analysts, on average, polled by Thomson-Reuters expected the company to report earnings of $0.47 per share on revenue of $2.54 billion. Analysts' estimates typically exclude special items.

Looking forward to the third quarter, the company expects net sales to be in the range of $2.39 billion to $2.50 billion and normalized EPS in the range of $0.50 to $0.54. The consensus estimate stands at $0.57 per share for earnings and $2.58 billion for revenue.

For the full year, Newell has cut its earnings outlook to $1.79-$1.86 from $1.85- $1.93. Sales for the full year are expected between $9.76 billion and $9.98 billion compared with the previous outlook of $9.93 billion-$10.13 billion.

However, the company said that on a constant currency basis, it is maintaining the outlook.

Analysts see earnings of $1.88 per share on revenue of $10.06 billion for the full year.

The stock is down nearly 3% in pre-market. It closed at $20.69, up 2.99% on Thursday.

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