Newell Brands Inc. (NWL) shares jumped Friday after the company reported a narrower-than-expected first-quarter loss and improving margins, offsetting continued softness in demand.

The consumer products company said pricing discipline and portfolio strength helped it navigate a choppy sales environment.

Quarterly Details

Newell posted an adjusted loss of 5 cents per share, beating analysts' estimates of a 9-cent loss. Revenue totaled $1.549 billion, down 1.1% year over year but above the consensus estimate of $1.507 billion. Core sales declined 3.5%.

The Home & Commercial Solutions segment reported net sales of $780 million, with core sales down 6.9%. The Learning & Development segment generated $594 million in net sales, with core sales up 2%.

Adjusted gross margin rose to 33.2% from 32.5% a year earlier, while adjusted operating margin increased to 4.8% from 4.5%.

CFO Mark Erceg said operating margin expanded year over year as productivity and pricing actions offset inflation and lower volumes. He added that stronger operating performance and cost discipline lifted earnings above expectations, prompting the company to raise its full-year sales and earnings outlook.

Adjusted EBITDA was $135 million, compared with $136 million in the prior-year period.

Year-to-date operating cash outflow was $233 million, versus $213 million a year earlier, reflecting higher inventory levels.

Outlook

For the second quarter, Newell expects adjusted earnings of 16 cents to 19 cents per share, below the 26-cent consensus estimate, and projects net sales to be flat to up 2%.

The company raised its full-year 2026 adjusted EPS guidance to 56 cents to 60 cents, from a prior range of 54 cents to 60 cents, in line with estimates. It now expects net sales to be flat to up 2%, compared with its earlier outlook of down 1% to up 1%.

NWL Price Action: Newell Brands shares were up 9.56% at $4.474 at the time of publication on Friday.