Q1 2024 Earnings Summary
Reported on Apr 26, 2024 (Before Market Open)
Pre-Earnings Price$6.94Last close (Apr 25, 2024)
Post-Earnings Price$7.59Open (Apr 26, 2024)
Price Change
$0.65(+9.37%)
- Newell Brands achieved positive operating cash flow of $32 million in Q1 2024, compared to a use of $77 million in Q1 2023, marking the first positive first quarter operating cash flow since 2020 and only the second since 2016, indicating improved financial strength and better cash flow management.
- The company's new strategy is delivering significant improvements in gross margin, operating margin, and cash flow, with the CEO expressing optimism about the positive results and future growth prospects.
- Three business units—Writing, Baby, and Commercial—have returned to growth, driven by strong innovation, marketing efforts, and new distribution gains, positioning Newell Brands for market share gains even in flat markets.
- The company expects the categories in which they compete to decline in all four quarters of 2024 and is not anticipating a return to growth during this period, suggesting continued headwinds for sales growth.
- The Outdoor & Recreation business continues to underperform, with significant capability gaps and innovations not expected to impact the market until 2025, delaying potential improvements in this segment.
- In prior years, the company has had to revise guidance down multiple times, raising concerns about the reliability of their forecasts and the potential for future downward revisions.
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