Newell Brands Inc. saw its stock price go up a lot, by 13% to $7.86 per share. This is the highest it’s been in about a month. The reason for this increase is that the company announced that it’s making more money from each product it sells and is losing less money altogether. Also, it made more money than experts thought it would.
The company has been trying to spend less money and make more profit, and it seems to be working. That’s why investors are happy.
In the first three months of this year, Newell Brands lost $9 million, or 2 cents per share. This is a lot better than last year when it lost $102 million, or 25 cents per share, during the same time.
After adjusting some things, the company didn’t lose any money this year, which is better than what experts expected. Even though the company made 8.4% less money altogether, it still made more than what experts thought it would.
Under the direction of CEO Chris Peterson, Newell Brands has made “great progress” in its plan to make changes, which they first talked about in January.
These changes have led to better sales, improved profit margins, and more money coming in all-around. The company’s profit margin went from being negative 2% last year to a positive 1% now. After adjusting some things, the profit margin went up to 4.6% from 2.4%.
As part of the plan to make things better, Newell Brands said it’s going to have 7% fewer employees, which means about 24,600 people will lose their jobs. This is part of a bigger plan to use less office space and find other ways to spend less money.
Looking ahead, Newell Brands expects to make between 18 and 21 cents per share in profit for the next three months, which is less than what experts thought. For the whole year, the company thinks it will make between 52 and 62 cents per share, also less than what experts expected.
The company spent $22 million on making changes in the first three months of this year. They plan to save between $55 million and $70 million this year by making these changes. Also, they think they’ll spend between $75 million and $90 million more on making changes by the end of the year, all to try to make things better financially.
