Newell Brands hits 14th 52-week low despite transformation efforts

From Nasdaq: 2024-06-26 16:31:46

The state of the markets is puzzling, with the S&P 500 near all-time highs while 52-week lows exceed highs by four times. MarketWatch discusses the index’s direction and strategists maintain a bullish end-year target of 5,500. Newell Brands, maker of Rubbermaid, hit its 14th 52-week low, struggling despite past transformation efforts.

Newell Brands has been undergoing a transformation since October 2016, consolidating business units and selling off some divisions to reduce debt. Despite selling $8.86 billion in businesses, revenues declined by 39% by the end of 2023. The company locked horns with activist investor Starboard Value in 2018, leading to board changes and stake reduction.

Under CEO Chris Peterson, Newell Brands shifted its focus to profitable brands and growth areas in 2023, with a restructured strategy aiming for pre-tax savings of up to $90 million. First-quarter 2024 results showed sales down 8.4%, but operational improvements resulted in a normalized operating profit of $76 million. Forecast for 2024 includes a 6.5% sales decrease and $0.57 earnings per share.

CEO Chris Peterson and CFO Mark Erceg praised Newell Brands’ progress in the first quarter of 2024, highlighting operational and financial improvements. The company’s gross margins are improving, but the focus remains on reigniting organic sales growth to sustain the positive trajectory. Despite skepticism, aggressive investors may see potential in betting on the company’s ongoing transformation.



Read more at Nasdaq: Newell Brands Hits Another 52-Week Low: Is There Any Hope for the Maker of Rubbermaid?