Spectrum Brands Holdings Inc. (SPB) appears in good shape, thanks to its robust strategic efforts. The company's Global Productivity Improvement Plan, which aims at improving the operating efficiency, is encouraging too. Solid gains from pricing, cost improvements and favorable mix have been aiding its margins for a while now. Its e-commerce unit also bodes well. Analysts seem optimistic about the company's earnings potential. The Zacks Consensus Estimate for fiscal 2024 and fiscal 2025 earnings per share i ...

Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Spectrum Brands (SPB) and VIZIO Holding Corp. (VZIO) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style ...

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Spectrum Brands Holdings Inc. (SPB) reported mixed third-quarter fiscal 2024 results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed. Both metrics rose year over year. Results gained from cost improvements, sturdy e-commerce business and reduced inventory. The company is focused on boosting top-line growth via commercial investments. It has been significantly investing in brand-focused advertising, marketing and innovation. In the reported quarter, it made investments ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of 6% and organic sales growth of 7.1% for the quarter, driven primarily by volume increases across all business units [7][23] - Adjusted EBITDA increased to $106.3 million, up from $99 million a year ago, reflecting strong performance across all three business units [9][24] - Gross profit margin improved to 38.9%, an increase of 310 basis points compared to the prior year, attributed to operational efficiencies and cost savings [10][24] Business Line Data and Key Metrics Changes - Home & Garden business achieved a remarkable 13.1% top-line growth, benefiting from improved weather conditions and increased retail inventory health [7][30] - Global Pet Care organic sales grew by 4.1%, with strong performance in e-commerce contributing to the growth [8][29] - Home & Personal Care reported a 3.5% increase in net sales, with e-commerce sales growing over 33% [34][36] Market Data and Key Metrics Changes - E-commerce sales represented over 21% of total net sales for the quarter, with all business units experiencing double-digit growth in this channel [9][34] - The company noted improved retail inventory levels, which were healthier than the previous year, positively impacting sales alignment with point of sale [8][30] Company Strategy and Development Direction - The company is focused on driving top-line growth through brand-focused advertising, marketing, and innovation investments, with plans to invest approximately $50 million more for the full year [5][15] - The separation of the Home & Personal Care business is being actively pursued, with multiple bids received and a Form 10 registration statement filed for a potential spin-off [17][59] - The company aims to maintain a disciplined cost structure while investing in operational improvements and brand development to support future growth [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding geopolitical and macroeconomic uncertainties, including rising ocean freight rates and consumer health volatility [21][43] - The company anticipates continued sales growth in the fourth quarter, driven by favorable weather trends and strong e-commerce performance [20][61] - Management remains optimistic about the company's operational efficiency and strong balance sheet, which are expected to support future investments and growth [12][43] Other Important Information - The company repurchased 1.6 million shares during the quarter, returning over $1 billion to shareholders since the close of the HHI transaction [19][25] - The adjusted diluted EPS increased by $0.17 to $1.10, driven by higher adjusted EBITDA and a reduction in shares outstanding [24] Q&A Session Summary Question: What is the heavy lifting left after the HPC separation? - Management indicated that the separation will likely lead to a multiple uplift for the remaining company, and they plan to focus on organic and inorganic growth post-separation [44][46] Question: Can you provide details on the increased marketing spend? - Management noted that approximately half of the $23 million increase in advertising spend was allocated to Home & Garden, with the remainder distributed among other business units [48][49] Question: How did hardware compare to consumables in the Pet segment? - Management highlighted that while durable goods faced challenges, consumables showed growth, particularly in e-commerce, which is expected to continue [51][52] Question: What are the expectations for free cash flow moving forward? - Management expressed confidence that free cash flow will improve significantly as the company continues to manage working capital effectively and reduce interest expenses [63][64]

For the quarter ended June 2024, Spectrum Brands (SPB) reported revenue of $779.4 million, up 6% over the same period last year. EPS came in at $1.10, compared to $0.75 in the year-ago quarter. The reported revenue represents a surprise of +3.48% over the Zacks Consensus Estimate of $753.16 million. With the consensus EPS estimate being $1.35, the EPS surprise was -18.52%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Spectrum Brands (SPB) came out with quarterly earnings of $1.10 per share, missing the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -18.52%. A quarter ago, it was expected that this holding company would post earnings of $0.49 per share when it actually produced earnings of $1.62, delivering a surprise of 230.61%. Over the last four quarters, t ...

In its upcoming report, Spectrum Brands (SPB) is predicted by Wall Street analysts to post quarterly earnings of $1.35 per share, reflecting an increase of 80% compared to the same period last year. Revenues are forecasted to be $753.16 million, representing a year-over-year increase of 2.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Be ...

Spectrum Brands Holdings, Inc. (SPB) is expected to register bottom-line growth when it reports third-quarter fiscal 2024 results on Aug 8, before the opening bell. The Zacks Consensus Estimate for the bottom line is pegged at $1.35 per share, up about 80% from the figure reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. The consensus mark for revenues is pegged at $753.2 million, indicating a decline of 2.4% from the year-ago quarter. In the last reported quar ...

Spectrum Brands Holdings Inc. (SPB) seems well-poised for growth, thanks to its robust strategic efforts. The company is benefiting from increased pricing, cost improvements and a favorable mix. Its Global Productivity Improvement Plan ("GPIP"), which aims at improving operating efficiency and effectiveness, appears encouraging too. Image Source: Zacks Investment Research However, Spectrum Brands has been witnessing soft demand in the small kitchen appliances category, volume declines in certain pet channel ...