Newell Brands experienced a significant plunge in its stock value, dropping 30% following a grim revision of its full-year financial outlook. The company, known as the parent of Rubbermaid, attributed this downgrade partly to the impact of tariffs. In its latest report, Newell Brands indicated that it now anticipates a year-over-year decline in 2025 net sales of approximately 4.5% to 5%, markedly worse than the previous forecast of a 2% to 3% drop.
Additionally, the company’s expectations for normalized earnings per share have decreased to a range of $0.56 to $0.60, down from an earlier estimate of $0.66 to $0.70. The projected normalized operating margin has also been revised downwards to between 8.4% and 8.6%, compared to the earlier estimate of 9% to 9.5%. Newell cited an incremental cash tariff cost of roughly $180 million as one of the factors influencing its revised outlook.
In the third quarter, Newell Brands reported sales that fell by 7.2%, totaling $1.81 billion. The company attributed this decline to several factors, including reduced retail inventory levels, international market challenges—especially in Brazil—and a dampening of demand following price increases driven by tariffs. The company’s stock has plummeted by nearly two-thirds in value since the start of the year.
In other market news, Netflix announced a 10-for-1 stock split intended to make its shares more accessible, particularly for employees participating in stock option programs. Shareholders will receive nine shares for each share they currently hold, resulting in a lower price per share without changing the overall value of their investments. This stock split is set to take effect on November 14, with trading at the adjusted price beginning on November 17. Netflix shares recently traded at around $1,123, reflecting a year-to-date increase of about 26%, outperforming the S&P 500’s 16% rise.
Meanwhile, DexCom saw its stock decline approximately 15% after CEO Jake Leach’s comments regarding the company’s revenue growth forecast for the future fell short of analysts’ expectations. Although the company reported Q3 earnings that exceeded estimates, concerns arose regarding the growth trajectory Leach alluded to during the earnings call.
On a positive note, Apple shares reached new highs following the release of its earnings, which surpassed analysts’ projections. The company reported fourth-quarter earnings of $1.85 per share on revenues of $102.47 billion, with record growth in its services revenue, indicating a strong outlook for the upcoming holiday season.
Amazon also experienced a surge in its stock price after releasing third-quarter results that exceeded analysts’ expectations, bolstered by robust growth in its cloud computing sector. The company’s shares rose over 13% in early trading, reflecting optimism about future revenue growth. Amazon expects fourth-quarter revenues to be between $206 billion and $213 billion, a figure that further enhances investor confidence once determined by the company’s performance amidst challenging economic conditions.
Overall, futures in the stock market fluctuated, with the S&P 500 futures rising by 0.6% while futures tied to the Dow Jones Industrial Average showed minimal movement.
