What happened?
Shares of Newell Brands Inc. (NWL -1.42%), a household products company boasting well-known brands such as Rubbermaid, Paper Mate, and Sharpie, among many others, are shedding roughly a quarter of their value Thursday after the company missed estimates and lowered guidance.
So what
Third-quarter revenue dropped 7% to $3.68 billion, which also checked in below the analysts' estimates calling for $3.71 billion. Excluding one-time items, Newell's adjusted earnings per share checked in at $0.86, also below analysts' calling for $0.92 per share.
"Newell Brands third quarter results were below expectations as our transformation progress was overshadowed by weak late-quarter sales related to retailer inventory rebalancing, primarily in response to decelerating U.S. market growth through the Back-to-School period," said Michael Polk, Newell Brands' CEO, in a press release.
Image source: Getty Images.
Now what
The last straw for some investors was management cutting Newell's 2017 adjusted earnings-per-share outlook from the original range of $3 to $3.20 down to $2.80 to $2.85 and also slashing its revenue guidance from between $14.8 billion to $15.0 billion down to a range of $14.7 billion to $14.8 billion. Management had previously trimmed guidance once already, contributing to its slump in September. The good news for investors is that management remains confident it will bounce back through its market share gains, point of sale growth, and cost reductions.
