Newell Brands Shares: Is the Downturn Bottoming Out?

Newell Brands finds itself navigating turbulent financial waters as its stock performance continues to disappoint investors. With consecutive disappointing quarterly results and significantly lowered guidance, market participants are questioning when the persistent decline might finally reverse course.

The financial community has responded to Newell Brands' challenges with widespread target price reductions across major institutions:

• Canaccord Genuity adjusted their price target downward from $9.00 to $7.00 while maintaining a "Buy" recommendation
• RBC Capital Markets slashed their target more aggressively from $8.00 to $4.50, rating the stock as "Sector Perform"
• JP Morgan reduced their expectation from $6.00 to $5.00, keeping an "Overweight" stance
• Citigroup delivered the most pessimistic assessment, cutting their target to just $3.50 with a "Neutral" rating

This collective downward revision signals diminishing confidence even among typically optimistic market observers.

Quarterly Performance Triggers Market Reaction

The company's third-quarter 2025 results, disclosed on October 31, fell substantially below market expectations. Adjusted earnings per share reached $0.17, narrowly missing the projected $0.18. More concerning was the 7.2% revenue decline to $1.81 billion, well short of the anticipated $1.88 billion. Core sales demonstrated even greater weakness, contracting by 7.4%.

Should investors sell immediately? Or is it worth buying Newell Brands?

Investors responded decisively to the disappointing figures, driving the stock price down more than 18% on the day of announcement. The decline continued, with shares hitting a new 52-week low of $3.75 on November 1. By November 14, the stock had retreated further to trade around $3.42.

Guidance Reduction Compounds Existing Challenges

Beyond the disappointing quarterly performance, management's revised outlook has intensified concerns about the company's near-term prospects. Newell Brands substantially lowered expectations for both the fourth quarter and full year 2025:

• Q4 earnings guidance now stands at $0.16-$0.20 per share, compared to previous expectations of $0.27
• Q4 revenue projections were adjusted to $1.871-$1.930 billion, below analyst consensus
• Full-year earnings expectations were cut to a range of $0.56-$0.60 per share
• Annual revenue forecasts were reduced to $7.203-$7.241 billion

The company continues to implement strategic initiatives, including its Customer Experience Center in Hoboken, while maintaining its $0.07 dividend payable November 10. However, current financial metrics present a concerning picture that offers little encouragement for equity holders seeking near-term recovery.