By Yasin Ebrahim
Investing.con — Newell Brands on Tuesday cut its guidance for the current quarter and fiscal year warning that a deteriorating macroeconomic backdrop and an inflation-squeezed consumer will hurt demand.
Newell Brands (NASDAQ:) was down more than 8% in afterhours trading following the news.
The company cut its guidance on third-quarter adjusted earnings per share to a range of $0.46 to $0.51, down from the prior guidance of $0.50 to $0.54, with sales trimmed to between $2.21 billion and $2.32 billion from $2.39 billion to $2.50 billion previously. This compared with Wall Street estimates for EPS of $0.53 per share on sales of $2.47 billion.
For 2022, the company expects adjusted EPS in a range of $1.56 to $1.70, down from $1.79 to $1.86, with sales forecast between $9.37 billion and $9.58 billion, down from $9.76 billion to $9.98 billion previously.
“[W]e have experienced a significantly greater than expected pullback in retailer orders and continued inflationary pressures on the consumer. As a result of these developments and our more cautious posture for the balance of the year, we are adjusting our expectations for the second half of 2022,” the company said.
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