Expand / Collapse search
Watch TV
Menu

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions.  Legal Statement.

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Markets
Published

Why Newell Brands' Stock Fell 12% in September

What happened

Consumer goods specialist Newell Brands (NYSE: NWL) shed 12% last month, according to data provided by S&P Global Market Intelligence.

The decline sent Newell's stock into negative territory in 2017, and its 4% dip puts it well behind the double-digit gain the broader market has enjoyed.

So what

September's slump followed a business update early in the month that saw the company lower its profit forecast for the year. CEO Michael Polk and his executive team now see earnings ranging from $2.95 per share to $3.05 per share, compared to the prior range of $3 to $3.20 per share.

Hurricane Harvey had a devastating impact on a few key raw material suppliers located in Texas and Louisiana. As a result, Newell has had to look elsewhere for these supplies, management said, and while it has had some success securing them, their costs are significantly higher than expected.

Now what

Executives believe raw material costs will remain elevated through this year and into 2018, and that means lower profits than would otherwise be the case. However, the company still expects to grow sales at the same healthy pace. Thus, this profit downgrade appears to be just a temporary speed bump that doesn't threaten Newell's recent market share gains or its long-run trend of rising profitability.

10 stocks we like better than Newell BrandsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Newell Brands wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of September 5, 2017

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.