Newell Brands stock surges on Q2 earnings beat, raised guidance

Shares of Newell Brands (NWL) are surging after topping second quarter earnings expectations and raising its forecast for the year. In the release, Newell Brands Chief Financial Officer Mark Erceg says, "While the macroeconomic environment remains choppy, the transformation of our business is clearly underway, which has given us confidence to improve our financial outlook for the year."

Market Domination Hosts Julie Hyman and Josh Lipton break down the earnings and its stock valuation.

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This post was written by Melanie Riehl

Video transcript

Shares of newer brands look at that surging today after reporting second quarter, earnings company also raising its earnings forecast for the year.

So household products maker, brands like Elmers Sharpie post Q two report beats also raises outlook execs talking about significant progress uh in driving the turnaround here, Julie on the call mentioning how they have improved the rate of year over year core sales growth.

They say from down 15% in the first half of 23 to down 9% in the back half of 23 to now down 4.5% in the first half of 24.

In other words, they say we're moving in the right direction.

Yeah, I mean that struck me a little bit initially that their sales are still falling.

But as you say, Chris Peterson on the call pointed out they're falling by less like they keep getting less bad, I guess quarter over quarter, even as the profitability increases here, he also highlighted the strength of um innovation, innovation pipeline in some of their uh different product lines.

They make Rubbermaid, they make Graco, they make Oster the blenders, they make sharpie.

So they have a pretty big product portfolio.

Um, one of the things that stood out to me, you might appreciate this a, uh, one handed stroll like the stroller that folds, but you can open it with just one hand with the button instead of having to wrestle with the thing while you're trying to hold a kid and the whole thing.

So, he, that was something very helpful.

The stock rocketing higher.

The Dow Jones Jones pointing out the stock on track for its biggest one day gain since the company went public back in 72.

All right.

It's been around for a while there.