Newell Brands cuts FY17 normalized EPS view to $2.95-$3.05 from $3.00-$3.20
Consensus $3.12. Backs FY17 revenue guidance of 14.8B-$15B, consensus $14.94B. Newell Brands announced that it is updating its 2017 normalized EPS guidance for the anticipated effects of Hurricane Harvey on its U.S. manufactured resin businesses, including increasing inflationary pressure through Q3. Since Hurricane Harvey's landfall on August 25, 2017, nearly all of Newell Brands' resin suppliers with facilities in Texas and Louisiana have declared force majeure, with many facilities shut down for more than a week and some still not operating. The company is working closely with both U.S. and international suppliers to find alternative sources of resin with some early success, albeit at a significantly higher delivered cost than in its plans. As a result, the company has revised its normalized EPS guidance to $2.95-$3.05 from $3.00-$3.20. Its outlook for 2017 net sales and core sales remains unchanged.