Newell Brands Faces Financial Struggles as Stock Plummets 13%

Newell Brands Inc.’s stocks have been trading down by -27.33 percent amid cautious investor sentiment concerning future profits.

Key Highlights

A severe downturn as shares of Newell Brands fell 13%, now priced at $4.11 amid disappointing Q3 earnings and revised FY25 projections.

Consumer Staples industry expert:

Analyst sentiment – negative

Newell Brands Inc. (NWL) is struggling with its market position, evidenced by its financial metrics. With a steep revenue decline over the past three and five years at -10.08% and -4.88% respectively, and a negative profit margin total of -0.33, the company faces significant challenges. Its balance sheet shows high leverage with a total debt-to-equity ratio of 1.93 and an interest coverage ratio of just 2.8, indicating potential liquidity issues. Despite a gross margin of 34%, its ability to convert sales to profit remains weak. Moreover, a negative price-to-cash flow ratio of -6.1 suggests operational inefficiencies in generating cash from business activities.

From a technical perspective, NWL is exhibiting a clear downtrend with a pronounced decrease in share price over the past week. Starting from an open of $5.09 to closing at $3.4299, the price plummeted sharply, crossing key support levels with increased selling pressure evidenced by declining prices. The downward spiral is further corroborated by weak volume support which hints at persistent bearish momentum. Traders should consider short-selling strategies or opt for tight stop-losses with close monitoring for potential reversals or consolidated base formations near $3.40, which could be an emergent figure for near-term support.

The outlook for Newell Brands appears bleak, given recent announcements. The company’s projected Q4 EPS of 16c-20c falls below the consensus, coupled with anticipated revenue growth contraction. Additionally, increased cash tariff costs in 2025 are likely to pressure gross profits, with a significant impact of around $115M or 23c per share after tax. Given the broader Consumer Staples sector’s resiliency, NWL’s underperformance, driven by trade disruptions and tariff concerns, stands out negatively. Trading resistance is now solidified around $5, and potential downside beyond $3.40 could be at play if current trends persist.

Tariff costs are projected to surge in 2025, with an anticipated increase of $180M, impacting its gross profits and EPS negatively by $115M, or 23c per share.
The company’s Q4 EPS expectations drastically dropped to 16c-20c, underwhelming market consensus pegged at 27c, with revenue growth predicted between -1% and 4%.

More Breaking News

Weekly Update Oct 27 – Oct 31, 2025: On Sunday, November 02, 2025 Newell Brands Inc. stock [NASDAQ: NWL] is trending down by -27.33%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Newell Brands Inc. has been on a challenging financial trajectory. Recent earnings reveal that Q3 revenue hit $1.81 billion, falling short of the anticipated $1.89 billion. Adjusted EPS for the third quarter settled at $0.17 per share, slightly below the estimated $0.18. The firm has taken a hard stance to manage upcoming financial strains, including significant tariff costs and a tough consumer pricing landscape. The dramatic 13% decline in stock, reaching lows of $4.11, mirrors investor reactions to these financial shortfalls.

The company’s profitability margins underscore pressing issues: a negative profit margin of 0.33% despite a gross margin of 34%. With high total debt to equity at 1.93 and a leverage ratio of 4.2, Newell faces formidable capital management challenges. Its cash flow statements highlight cash struggles, with operating cash flow recorded at $374M and a net income of just $21M.

The stock’s recent trading history spells concern, dropping from an opening of $5.09 just days ago to hover around $3.4 as of recent trades. Attempts to stabilize through innovation, marketing, and distribution enhancements may yet offer long-term relief, but current figures cast a significant shadow over Newell’s immediate outlook.

Conclusion

Newell Brands stands at an inflection point, contending with steep challenges that threaten to reshape its financial standing. Stock market responses reveal skepticism, amplified by comprehensive forecasts of tight margins and increased operational costs. In this context, traders are reminded of a guiding principle in the trading world. As Tim Bohen, lead trainer with StocksToTrade says, “I never chase price. The best opportunities allow me to enter on my terms, not when I’m feeling pressured.” While strategic initiatives in distribution and marketing present a pathway for potential recovery, immediate financial performance remains precarious. Traders will be keenly observing if Newell can close its fiscal gaps, recalibrate efficiencies, and confront imminent industry pressures effectively in the upcoming quarters.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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