Newell Brands raises FY24 normalized EPS view to 63c-66c from 60c-65c

Consensus 65c. Backs FY24 revenue view down 6%-7%. Raises FY24 normalized operating margin view to 8.1%-8.3% from 8%-8.2%. Raises FY24 operating free cash flow view to $500M-$600M from $450M-$550M. Mark Erceg, Newell Brands (NWL) CFO, said, “Our reported gross margin in the third quarter increased by 460 basis points compared to the same quarter last year, marking the fifth consecutive quarter of significant gross margin expansion. Importantly, outstanding productivity and cost reduction efforts drove third quarter gross margin to the highest level achieved since 2020 on both a GAAP and normalized basis. In addition, leverage metrics improved notably as we continue along our multi-year journey towards earning an investment grade credit rating. Given strong third quarter results, we are increasing our 2024 normalized operating margin, normalized earnings per share and operating cash flow outlook for the second time this year.”