Newell Brands raised its full-year sales guidance after third-quarter results met analyst estimates. The company reported a net loss of $81 million, or 19 cents per diluted share, compared to net income of $21 million, or five cents per share, in the same period last year. Adjusted for one-time items, net income was $86 million, or 20 cents per diluted share, up from $70 million, or 17 cents per share. Analysts had forecast adjusted net income of 20 cents per share and revenues of $1.85 billion.
Net sales reached $1.87 billion, up from $1.81 billion in the prior-year quarter. Operating income was $27 million, a decline from $119 million a year earlier, while adjusted operating income increased to $184 million from $162 million.
Segment Performance Varied
The Home & Commercial Solutions segment reported net sales of $1.01 billion, up from $942 million. Operating loss was $37 million, versus operating income of $40 million a year prior. The segment noted core sales grew in kitchen, home fragrances, and commercial operations.
The Learning & Development segment posted net sales of $692 million, up from $681 million. Operating income rose to $137 million from $124 million. Core sales increased in the writing business, while the baby business remained flat.
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The Outdoor & Recreation segment saw net sales fall to $169 million from $183 million. Operating loss widened to $14 million from $8 million, and adjusted operating loss increased to $10 million from $1 million.
Updated Guidance and Executive Comments
Newell updated its fiscal-year guidance to sales growth of 2% to 3%, up from a previous forecast of 1% to 2%. Adjusted net income per diluted share is now expected to be 74 cents to 76 cents, up from 73 cents to 77 cents.
Chris Peterson, president and CEO, stated, “Top-line growth accelerated sequentially as Newell Brands delivered its second consecutive quarter of year-over-year growth in sales. Growth during the quarter was broad-based, with both the U.S. and International delivering growth along with four of our six businesses and seven of our top 10 brands.”
Mark Erceg, CFO, noted, “Stronger sales and world-class productivity efforts allowed third-quarter normalized gross and operating margins to expand significantly versus last year and normalized earnings per share to come in at the high end of our guidance range despite inflation that exceeded our expectations.”
