As previously reported, SunTrust analyst Bill Chappell upgraded Newell Brands to Buy and raised his price target to $25 from $15. The analyst contends that the company's business trends have bottomed out and the management's turnaround efforts are "gaining traction" given the top line trends and cash flow outlook. Chappell added that the current Newell Brands valuation of 12-times his expected forward earnings is "too cheap" while modeling a 16-times multiple in his forecast.

The company said, "In January 2024, the company announced an organizational realignment, which is expected to strengthen the company's front-end commercial capabilities, such as consumer understanding and brand communication, in support of the Where to Play / How to Win choices the company unveiled in June of 2023 (the "Realignment Plan"). In addition to improving accountability, the Realignment Plan should further unlock operational efficiencies and cost savings, reduce complexity and free up funds for reinvestment. As part of the organizational realignment, the company made several organizational design changes, which entailed: standing up a cross-functional brand management organization, realigning business unit finance to fully support the new global brand management model, further simplifying and standardizing regional go-to-market organizations, and centralizing domestic retail sales teams, the digital technology team, business-aligned accounting personnel, the Manufacturing Quality team, and the Human Resources functions into the appropriate center-led teams to drive standardization, efficiency and scale with a One Newell approach. The company will also further optimize Newell's real estate footprint and pursue other cost reduction initiatives. These actions are expected to be substantially implemented by the end of 2024. Once the organizational design changes are fully executed, the company expects to realize annualized pretax savings in the range of $65 million to $90 million, net of reinvestment, with $55 million to $70 million expected in 2024. Restructuring and related charges associated with these actions are estimated to be in the range of $75 million to $90 million and are expected to be substantially incurred by the end of 2024. During the first quarter 2024, the company incurred restructuring and related charges of $22 million related to the Realignment Plan."

Sees Q2 revenue down 7%-9%, consensus $2.03B. Sees Q2 normalized operating margin 9.1%-9.6%.