Shares of Newell Brands Inc.
NWL,
tumbled 12.2% toward a 14-year low in premarket trading Friday, after the consumer brands company missed third-quarter revenue estimates and provided a downbeat outlook for the current quarter. The company swung to a net loss of $218 million, or 53 cents a share, from net income of $19 million, or 5 cents a share, in the year-ago period. Excluding nonrecurring items, such as $263 million in impairment charges, adjusted earnings per share came to 39 cents, above the FactSet consensus of 23 cents, as cost cuts and saving initiatives helped boost gross margin to 30.3% from 29.2%. But sales fell 9.1% to $2.05 billion, to miss the FactSet consensus of $2.12 billion, with declines in all business segments. For the fourth quarter, the company expects adjusted EPS of 15 cents to 20 cents, well below the current FactSet consensus of 43 cents, and revenue is expected to be $1.96 billion to $2.03 billion, which is below Wall Street forecasts of $2.16 billion. The stock, which is on track to open at the lowest price seen during regular-session hours since April 2009, has plunged 43.5% year to date through Thursday, while the S&P 500
SPX,
has gained 7.8%.
