Newell Brands (NWL) stock plummeted 7.16% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results and second-quarter guidance that fell short of analyst expectations.

The consumer goods company reported a normalized loss of $0.01 per share for Q1, compared to breakeven results in the same period last year. While this beat the analyst consensus estimate of a $0.06 per share loss, it still represented a deterioration in profitability. Net sales declined 5.3% year-over-year to $1.57 billion, although this was slightly above the $1.54 billion analysts had forecast.

Investors appear particularly concerned about Newell's outlook for the second quarter. The company expects Q2 normalized earnings per share between $0.21 and $0.24, significantly below the $0.32 per share analysts were projecting. Additionally, 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. Despite these headwinds, Newell affirmed its full-year 2025 guidance for net sales, operating margin, and earnings per share, maintaining its normalized EPS forecast of $0.70 to $0.76.