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Newell Brands Stock Plummets After Disappointing Q3 Results and Guidance Cut

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 11/1/2025, 9:17 am ET 11/1/2025, 9:17 am ET | 6 min 6 min read
Newell Brands Stock Plummets After Disappointing Q3 Results and Guidance Cut Thumbnail

Newell Brands Inc.’s stocks have been trading down by -27.33 percent, driven by market turbulence and investor sentiment shifts.

Consumer Staples industry expert:

Analyst sentiment – negative

Newell Brands (NWL) is currently facing significant challenges in its market position, as evidenced by negative profitability metrics, including an EBIT margin of -2.5% and a profit margin of -3.29%. Revenue has trended downward over the past three to five years, registering decreases of 11.06% and 4.25% respectively. The company’s valuation is concerning, with a price-to-sales ratio of 0.27 and a troubling price-to-cash flow ratio of -8.5. NWL’s high total debt-to-equity ratio of 2.05 and leverage of 4.3 indicate substantial financial strain, which, coupled with low interest coverage of 1.6, suggests liquidity risks. Despite some operational cash flow, the net income from continuing operations remains a modest $21 million, painting a challenging picture for the company.

In terms of technical analysis, Newell Brands shows a bearish trend with significant downward price action. The weekly closing prices have fallen from $5.08 to $3.4299, indicating a downtrend. The recent price drop to $3.4299 on October 31st underscores weak investor sentiment. Volume analysis during these sessions suggests selling pressure with lower highs and lower lows reinforcing bearish momentum. A specific trading strategy would be to sell or short the stock while observing for support around $3.40. If the price breaks this level, further downside is probable. A cautious investor might wait for a reversal signal or confirmation of support before reconsidering an entry position.

Newell Brands’ outlook remains challenging, particularly due to their revised Q4 guidance, anticipating EPS well below consensus expectations. The company faces a substantial tariff impact anticipated at $180 million, exacerbating cost pressures. Notably, Newell Brands reported a $1.81 billion Q3 revenue, missing expectations by $80 million, signaling demand challenges and ongoing trade disruptions that hamper recovery prospects. Compared to Consumer Staples benchmarks, Newell’s forecasted revenue growth—to possibly decline—coupled with the weak EPS expectations, places it unfavorably against its peers in the Household & Personal Products sector. Resistance is likely around $4, with support tentatively near $3.40. Given these financial strains and competitive disadvantages, NWL’s near-term outlook is negative.

Candlestick Chart

Weekly Update Oct 27 – Oct 31, 2025: On Saturday, November 01, 2025 Newell Brands Inc. stock [NASDAQ: NWL] is trending down by -27.33%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Newell Brands Inc. recently reported third-quarter earnings that lagged behind market expectations, leading to a notable 13% drop in its stock price. The company recorded a Q3 revenue of $1.81 billion, falling short of the projected $1.89 billion by analysts, as gauged by FactSet. Adjusted earnings per share came in at $0.17, narrowly missing the expected $0.18. These results reflect a broader pattern of financial strain, stemming from significant trade disruptions and unfavorable international market conditions, which have compelled the firm to pare down its full-year outlook.

The company’s profitability ratios paint a grim picture, with an EBIT margin of -2.5% and a profit margin of -3.29%, suggesting operational challenges. Their balance sheet indicates high leverage with a total debt to equity ratio of 2.05, complicating financial flexibility. Newell’s gross margin stands at 34.2%, providing a silver lining amidst disappointing overall profitability. However, the cost structure overhangs heavily due to anticipated tariff hikes likely to cost an additional $180 million in 2025, effectively cutting profits by $115 million after taxes.

More Breaking News

Stock market data shows that Newell’s share price has been in decline, with the close price falling steadily from $5.08 on October 27 to $3.4299 by October 31. Such trend underpins investor skittishness, driven by the company’s financial guidance shortfalls and macroeconomic pressures. Analysts consider the company’s quick ratio of 0.5 and current ratio of 1.1 as indicators of potential liquidity issues, which could amplify vulnerability amid impending tariff costs and competitive pressures.

Conclusion

In essence, Newell Brands Inc. finds itself at a critical juncture surrounded by a mire of operational challenges and financial headwinds. The repercussions from weaker-than-expected earnings and looming tariff-related costs have swiftly cast a shadow over trader sentiment, catalyzing an enduring loss of value in its stock. Evidence supports a recalibrated approach towards managing external pressures, reinforcing strategic objectives with effective cost containment and margin improvement.

The company must exhibit resilience by fortifying its market strategy, potentially pushing for enhanced revenue streams through diversifying its market presence and product innovation. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” In this context, maintaining stability without plunging into further deficits is crucial for Newell. As the economic landscape trudges through convalescence, Newell’s agility in capitalizing on strategic opportunities could redefine its recovery trajectory, promising potential long-term shareholder value enhancement. However, vigilance remains paramount as Newell navigates these turbulent waters.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”