Newell Brands (NWL) stock plummeted 8.51% in pre-market trading on Wednesday following the release of its first-quarter 2025 results and second-quarter guidance that fell short of analyst expectations. The company also warned of potential negative impacts from tariffs, raising concerns about its future performance.

While Newell's Q1 results beat analyst estimates with a smaller-than-expected loss of $0.01 per share compared to the forecasted $0.06 loss, investors focused on the disappointing outlook. The company expects Q2 normalized earnings per share between $0.21 and $0.24, significantly below the $0.32 per share analysts were projecting. Newell also revised its full-year 2025 core sales guidance, now expecting a decline of 1% to 3%, compared to its previous range of -2% to +1%.

Adding to investor concerns, Newell warned that if the recently imposed 125% tariff on Chinese imports remains in effect for the full year, it could negatively impact 2025 normalized EPS by as much as $0.10, even after implementing mitigating actions. This potential headwind, combined with the weaker outlook, likely contributed to the sharp stock decline.

Despite these challenges, Newell's management attempted to reassure investors about the company's positioning. CEO Chris Peterson stated that Newell's domestic manufacturing base puts the company "well to not just manage tariff related sourcing dislocations, but to ultimately benefit from them." Meanwhile, CFO Mark Erceg expressed confidence in the company's ability to offset current tariffs through targeted pricing actions and other measures.

Newell's Q1 sales declined 5.3% year-over-year to $1.57 billion, reflecting a core sales decline of 2.1%, unfavorable foreign exchange rates, and business exits. The company's ability to navigate these headwinds and deliver on its revised guidance will be crucial for regaining investor confidence in the coming quarters.