Newell Brands Inc (NYSE:NWL) stock was falling hard after the release of bad news for investors.
The first bit of bad news for NWL stock are early results for 2017. The company says it is expecting 2017 sales growth to be 0.8%, which is below its previous guidance of 1.5% to 2%. Wall Street is looking for revenue of $14.78 billion for 2017.
Newell Brands Inc also notes that it is expecting earnings per share for the full year to range from $2.72 to $2.76. Its previous guidance for 2017 earnings per share was $2.80 to $2.85. Analysts are estimating earnings per share of $2.81 for the year.
There’s also a bit of guidance for 2018 in Newell Brands Inc’s most recent announcement. The maker of commercial brands, such as Rubbermaid, is expecting 2018 earnings per share to range from $2.65 to $2.85. This isn’t good news for NWL stock as analysts are expecting earnings per share of $2.94 in 2018.
Another factor that is likely affecting Newell Brands Inc stock today are details from a new restructuring plans. This includes the company reducing its global factory and warehouse footprint by 50%, reducing its customers base by 50%and the consolidation of 80% of global sales on two ERP platforms. The company hopes to complete its plan by the end of 2019.
To go along with these announcements are changes at Newell Brands Inc’s Board of Directors. Board members G.H. Ashken, Domenico De Sole and Martin E. Franklin are resigning. The resignations are effective immediately.
NWL stock was down 22% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.