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Newell Brands' Q1 Earnings Approaching: What's in Store for the Stock?
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Key Takeaways
Newell Brands expected to post Q1 revenues of $1.51B, down 3.7% YoY.
NWL guides Q1 sales decline of 3-5% due to shipment timing and cautious retailer orders.
Newell Brands sees margins at 2.5-3.5% as tariffs and brand investments pressure profits.
Newell Brands Inc. (NWL - Free Report) is expected to register a year-over-year decline in the top and bottom lines when it reports first-quarter 2026 results on May 1, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.51 billion, indicating a decline of 3.7% from the figure reported in the year-ago quarter.
The consensus estimates calls for a loss of 9 cents per share, wider than the 1-cent loss reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 0.0%. Its bottom line beat the consensus estimate by 20.04%, on average, in the trailing four quarters.
Factors Likely to Impact NWL’s Q1 Results
Newell Brands is set to release first-quarter 2025 results amid a turbulent macroeconomic environment that has weighed on consumer sentiment and discretionary spending. Persistent inflationary pressures, coupled with geopolitical volatility and rapidly evolving retail dynamics, continue to challenge the company’s ability to drive consistent top-line growth.
Newell Brands’ first-quarter 2026 results are expected to reflect continued softness in top-line performance, driven by shipment timing headwinds and retailer-related dynamics. On its last earnings call, management has indicated that first-quarter net sales are likely to decline in the range of 3-5%, with core sales projected to fall 5-7%. These pressures are largely linked to the timing of shelf resets and innovation shipments, along with cautious retailer ordering patterns, which may weigh on early-year revenue visibility.
Margin performance in the first quarter is expected to remain under pressure, reflecting ongoing tariff-related headwinds and higher brand investment spending. Management anticipates normalized operating margins in the range of 2.5-3.5% for the period, with tariff impacts continuing to weigh on profitability despite mitigation efforts through productivity initiatives and selective pricing actions. Elevated advertising and promotional spending to support brand restaging initiatives, particularly in home fragrance, may also constrain margins in the near term.
On the operational front, productivity initiatives, restructuring actions and supply-chain efficiencies are expected to provide partial offsets to cost pressures. The company continues to focus on simplification strategies, procurement savings and improved distribution execution, which are anticipated to support gradual margin stabilization over time. Additionally, a robust innovation pipeline, including multiple new product launches planned for 2026, may help strengthen market positioning and support longer-term category performance.
Overall, earnings performance for the first quarter is expected to reflect transitional dynamics, with the company guiding toward a normalized loss in the range of 8-12 cents per share. While near-term headwinds tied to demand softness and operational resets are likely to weigh on results, ongoing strategic investments in innovation, distribution and brand support remain central to Newell Brands’ broader stabilization and recovery efforts through fiscal 2026.
What the Zacks Model Unveils for NWL Stock
Our proven model does predict an earnings beat for Newell Brands this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Newell Brands currently has an Earnings ESP of +2.28% and a Zacks Rank #3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Valuation Picture
From a valuation perspective, Newell Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 7.36X, which is significantly below the five-year high of 16.88X and the Consumer Products - Staples industry’s average of 17.68X, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
The recent market movements show that NWL shares have gained 1.8% in the past three months compared with the industry's 2.7% growth.
Image Source: Zacks Investment Research
Other Stocks With the Favorable Combination
Here are some other companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for Altria’s upcoming quarter’s earnings per share is pegged at $1.24, implying a 0.8% increase from the year-ago period. The consensus mark for Altria’s quarterly revenues is pegged at $4.56 billion, which indicates an increase of 0.9% from the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 2.5%, on average.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $2.05, which implies a 1.9% decrease year over year.
The consensus estimate for Hershey’s quarterly revenues is pinned at $3.02 billion, which calls for 7.9% growth from the figure reported in the prior-year quarter. HSY delivered a trailing four-quarter earnings surprise of nearly 17.2%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +3.81% and a Zacks Rank of 3. The Zacks Consensus Estimate for Celsius Holdings’ upcoming quarter’s EPS is pegged at 29 cents, which implies a 61.1% increase year over year.
The consensus estimate for Celsius Holdings’ quarterly revenues is pegged at $755.2 million, which indicates a surge of 129.4% from the figure reported in the prior-year quarter. CELH delivered a trailing four-quarter earnings surprise of roughly 45.3%, on average.
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Newell Brands' Q1 Earnings Approaching: What's in Store for the Stock?
Key Takeaways
Newell Brands Inc. (NWL - Free Report) is expected to register a year-over-year decline in the top and bottom lines when it reports first-quarter 2026 results on May 1, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.51 billion, indicating a decline of 3.7% from the figure reported in the year-ago quarter.
The consensus estimates calls for a loss of 9 cents per share, wider than the 1-cent loss reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
In the last reported quarter, the Atlanta, GA-based company delivered an earnings surprise of 0.0%. Its bottom line beat the consensus estimate by 20.04%, on average, in the trailing four quarters.
Factors Likely to Impact NWL’s Q1 Results
Newell Brands is set to release first-quarter 2025 results amid a turbulent macroeconomic environment that has weighed on consumer sentiment and discretionary spending. Persistent inflationary pressures, coupled with geopolitical volatility and rapidly evolving retail dynamics, continue to challenge the company’s ability to drive consistent top-line growth.
Newell Brands’ first-quarter 2026 results are expected to reflect continued softness in top-line performance, driven by shipment timing headwinds and retailer-related dynamics. On its last earnings call, management has indicated that first-quarter net sales are likely to decline in the range of 3-5%, with core sales projected to fall 5-7%. These pressures are largely linked to the timing of shelf resets and innovation shipments, along with cautious retailer ordering patterns, which may weigh on early-year revenue visibility.
Margin performance in the first quarter is expected to remain under pressure, reflecting ongoing tariff-related headwinds and higher brand investment spending. Management anticipates normalized operating margins in the range of 2.5-3.5% for the period, with tariff impacts continuing to weigh on profitability despite mitigation efforts through productivity initiatives and selective pricing actions. Elevated advertising and promotional spending to support brand restaging initiatives, particularly in home fragrance, may also constrain margins in the near term.
On the operational front, productivity initiatives, restructuring actions and supply-chain efficiencies are expected to provide partial offsets to cost pressures. The company continues to focus on simplification strategies, procurement savings and improved distribution execution, which are anticipated to support gradual margin stabilization over time. Additionally, a robust innovation pipeline, including multiple new product launches planned for 2026, may help strengthen market positioning and support longer-term category performance.
Overall, earnings performance for the first quarter is expected to reflect transitional dynamics, with the company guiding toward a normalized loss in the range of 8-12 cents per share. While near-term headwinds tied to demand softness and operational resets are likely to weigh on results, ongoing strategic investments in innovation, distribution and brand support remain central to Newell Brands’ broader stabilization and recovery efforts through fiscal 2026.
What the Zacks Model Unveils for NWL Stock
Our proven model does predict an earnings beat for Newell Brands this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Newell Brands currently has an Earnings ESP of +2.28% and a Zacks Rank #3. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Valuation Picture
From a valuation perspective, Newell Brands offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 7.36X, which is significantly below the five-year high of 16.88X and the Consumer Products - Staples industry’s average of 17.68X, the stock offers compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
The recent market movements show that NWL shares have gained 1.8% in the past three months compared with the industry's 2.7% growth.
Image Source: Zacks Investment Research
Other Stocks With the Favorable Combination
Here are some other companies that, according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Altria Group, Inc. (MO - Free Report) currently has an Earnings ESP of +0.52% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Altria’s upcoming quarter’s earnings per share is pegged at $1.24, implying a 0.8% increase from the year-ago period. The consensus mark for Altria’s quarterly revenues is pegged at $4.56 billion, which indicates an increase of 0.9% from the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 2.5%, on average.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $2.05, which implies a 1.9% decrease year over year.
The consensus estimate for Hershey’s quarterly revenues is pinned at $3.02 billion, which calls for 7.9% growth from the figure reported in the prior-year quarter. HSY delivered a trailing four-quarter earnings surprise of nearly 17.2%, on average.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +3.81% and a Zacks Rank of 3. The Zacks Consensus Estimate for Celsius Holdings’ upcoming quarter’s EPS is pegged at 29 cents, which implies a 61.1% increase year over year.
The consensus estimate for Celsius Holdings’ quarterly revenues is pegged at $755.2 million, which indicates a surge of 129.4% from the figure reported in the prior-year quarter. CELH delivered a trailing four-quarter earnings surprise of roughly 45.3%, on average.