Why Newell Brands Stock Jumped 39% on Friday Morning
Key Points
Newell Brands stock jumped as much as 38.7% on Friday morning before fading to a 10.5% gain by late morning.
Revenue grew 3.0% to $2.0 billion, Newell's first sales growth in over four years.
Adjusted earnings more than doubled the analyst estimate, but that was mostly a one-time tariff refund.
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Shares of Newell Brands (NASDAQ: NWL) soared as much as 38.7% on Friday morning after the consumer-products company reported second-quarter results. The gain had cooled to 10.5% by 11:28 a.m. ET, but the report still gave shareholders plenty to think about.
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A blowout quarter with an asterisk
Newell reported adjusted earnings of $0.42 per share against the $0.19 Wall Street had penciled in. Revenue climbed 3% to $2.0 billion, delivering the company's first sales growth in over four years.
Management also lifted full-year earnings guidance to a range of $0.73 to $0.77, up from the previous midpoint of $0.58.
So why did investors tap the brakes after the initial excitement? Because the fine print showed a big slice of the beat came from a one-time item. The Rubbermaid and Elmer's Glue company recorded roughly $100 million in 2025 tariff recoveries, or about $0.17 per share. Add another $0.04 from early 2026 refunds, and the "real" operating number looks closer to $0.21. That result is still above analyst estimates, but not by much.
Is Newell Brands stock a buy after the pop?
The raised outlook tells a similar story. That $0.17 tariff benefit was simply added to both ends of the prior EPS range, so the underlying operating forecast barely budged.
The encouraging part is what's happening in Newell's underlying business. Core sales rose 2.3%, five of the company's six units grew, and the U.S. business expanded for the first time since the COVID era. If that momentum sticks around after the tariff refunds dry up, Friday's spike might look less like a sugar high and more like a turning point.
Newell is trying innovative marketing tactics such as capitalizing on a viral conversation around a fictional Lazy River product -- a big hit on social media. Meanwhile, the stock trades at an affordable 11.3 times double-adjusted earnings (backing out the usual non-cash expenses as well as the tariff refunds). Newell's stock could be worth a nibble if you're into clever turnaround stories.
Should you buy stock in Newell Brands right now?
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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