Spectrum Brands Holdings Inc. (SPB) seems well-poised for growth, thanks to its robust strategic efforts. SPB's Global Productivity Improvement Plan (GPIP), which aims at improving operating efficiency and effectiveness, appears encouraging too. Spectrum Brands is benefiting from increased pricing, cost improvements and a favorable mix, which have been bolstering margins for a while now. The company has been proactive in its cost-takeout actions, including fixedcost reduction, by reducing advertising and pr ...

Investors interested in Consumer Products - Discretionary stocks are likely familiar with Spectrum Brands (SPB) and Kellanova (K) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimat ...

Shares of Spectrum Brands Holdings, Inc. (SPB) are trading near its 52-week high mark of $96.74. The stock is currently trading at a 6.7% discount to the highest point reached in 52 weeks. Moreover, the current stock price reflects a 38.3% premium from its 52-week low of $65.27. In the year-to-date period, Spectrum Brands' stock gained 14.8% compared with the industry's growth of 19% and outpaced the Consumer Discretionary sector's return of 3.7%. This growth highlights its resilience in the global consumer ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Zacks Premium also includes the Zacks Style Scores. Wha ...

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 ...

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service aims to help investors become smarter and more confident in their investment decisions [1] Group 2: Zacks Style Scores - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, assisting investors in selecting stocks likely to outperform the market in the next 30 days [2] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3] Group 3: Value, Growth, and Momentum Scores - Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] - Growth Score evaluates a company's financial strength and future outlook based on projected and historical earnings, sales, and cash flow [4] - Momentum Score assesses trends in stock prices and earnings estimates to identify favorable investment opportunities [4] Group 4: VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors seeking to balance these three investment styles [5] Group 5: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to facilitate portfolio building [6] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] Group 6: Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (e.g., 4 or 5) may still have good Style Scores but are likely to decline in price [9] Group 7: Company Spotlight - Spectrum Brands - Spectrum Brands Holdings, Inc. is a global consumer products company with a diverse portfolio, including residential locksets, grooming products, and pet supplies [10] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for growth [10] - Spectrum Brands is projected to experience year-over-year earnings growth of 211.1% for the current fiscal year, with an upward revision in earnings estimates [11]

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]

Financial Performance - Net sales increased by 60% to $7794 million in Q3 FY24 compared to $7355 million in Q3 FY23[12, 27] - Organic sales grew by 71% in Q3 FY24[7, 12] - Adjusted EBITDA increased to $1063 million in Q3 FY24 from $99 million in Q3 FY23[7, 12] Excluding $13 million of investment income, Adjusted EBITDA was $94 million[13] - The company delivered adjusted EBITDA including investment income of $1063 million, up from $99 million, while increasing investments in brands by almost $23 million[7] - GAAP Net Income was $191 million in Q3 FY24[12] Debt and Share Repurchases - The company retired $1174 billion in bonds with no future obligations for any of the HHI proceeds[7] - Issued $350 million, 5-year exchangeable senior, unsecured bonds at 3375%[7] - Net debt at the end of the quarter was $2716 million[7] - The company has approximately $400 million remaining on its $500 million share repurchase plan authorized in May 2024[9, 10] - Repurchased 132 million shares, reducing total shares outstanding by approximately 32%[9] Segment Performance - Global Pet Care (GPC) net sales increased by 36% to $2822 million in Q3 FY24[15, 27] Organic sales increased by 41%[16, 17] - Home & Garden (H&G) net sales increased by 131% to $211 million in Q3 FY24[18, 27] Organic sales increased by 130%[18] - Home & Personal Care (HPC) net sales increased by 35% to $2862 million in Q3 FY24[19, 27] Organic sales increased by 61%[19] FY24 Outlook - The company is targeting flat net sales versus last year and ~20% growth in adjusted EBITDA (without considering the impact of investment income)[21]