Shares of Newell Brands surged as much as 13.2% in early Friday trading. The stock touched $4.62. This is its highest level in over 2 months. The rally came after the company raised its full year outlook. It now expects net sales to range from flat to a 2% increase. Earlier, it had guided for a possible decline.
The company also improved its earnings view. It lifted the lower end of its normalized earnings per share forecast to $0.56 to $0.60. The earlier range started at $0.54.
The update gave investors confidence. It signaled better control over business conditions.
Sharpie maker sees strong consumer demand despite challenges
Newell Brands reported first quarter results that beat expectations. Sales came in stronger than predicted. Losses were also smaller than analysts had expected.
CEO Chris Peterson said demand remained solid. Consumers continued to buy products even in a tough environment. The company credited its strategy. It has been investing in product innovation. It also increased spending on ads and promotions.
This helped maintain interest in its brands. Items like Sharpie continue to see steady demand.
Oil price impact and future growth outlook for Newell Brands
The company also highlighted a key risk. Oil prices can affect its costs. For every $5 change in oil per barrel, the impact is around $5 million.
Newell Brands said it has a plan. If oil prices rise, it will try to offset the cost. If prices fall, it may boost profits or reinvest the savings. The stock has performed well recently. Including Friday’s jump, shares are up 21% this year.
The latest update shows steady progress. Investors now see signs of recovery as demand holds up and forecasts improve.