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 ...

Core Viewpoint - Spectrum Brands Holdings, Inc. (SPB) is anticipated to show significant bottom-line growth in its upcoming third-quarter fiscal 2024 results, with earnings per share expected to reach $1.35, reflecting an 80% increase year-over-year, despite a projected revenue decline of 2.4% to $753.2 million [1]. Group 1: Earnings Performance - In the last reported quarter, Spectrum Brands achieved an earnings surprise of 230.6%, with an average earnings surprise of 108.3% over the past four quarters [2]. - The Zacks Consensus Estimate for the upcoming quarter indicates a bottom-line growth, with earnings per share expected to be $1.35, up 80% from the previous year [1]. Group 2: Factors Influencing Results - The company's quarterly results are expected to benefit from the Global Productivity Improvement Plan, which focuses on enhancing operational efficiency and effectiveness through consumer insights and growth-enabling functions such as technology and marketing [3]. - Increased pricing, cost improvements, effective promotional activities, and a favorable product mix are likely to have positively impacted margins [4]. Group 3: Challenges and Market Conditions - Despite the anticipated growth, Spectrum Brands has been facing soft consumer demand, particularly in the small kitchen appliance category and North American aquatics, which may negatively affect top-line performance [5]. - The Home & Personal Care segment's sales are projected to decline by 1.8% year-over-year, indicating ongoing challenges in the market [5]. Group 4: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Spectrum Brands this time, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 3 [6].

Core Insights - Spectrum Brands Holdings Inc. (SPB) is positioned for growth due to strategic efforts, including increased pricing, cost improvements, and a favorable product mix [1][8] - The company has faced challenges such as soft demand in small kitchen appliances and volume declines in certain pet channels, impacting its second-quarter fiscal 2024 results [2][10] - Despite these challenges, SPB projects flat reported sales year over year for fiscal 2024, with adjusted EBITDA expected to grow in the low-double digits [3] Financial Performance - In the second quarter of fiscal 2024, Spectrum Brands' top line fell by 1.5% year over year, while organic net sales dipped by 1.6% [2] - The Zacks Consensus Estimate for fiscal 2024 sales is $2.92 billion, indicating a growth of 0.1% year over year, while earnings per share (EPS) is estimated at $4.68, reflecting a significant growth of 205.9% [11] Strategic Initiatives - The company is implementing its Global Productivity Improvement Plan (GPIP) to enhance operational efficiency and effectiveness, focusing on consumer insights and growth-enabling functions [3][9] - Spectrum Brands is committed to improving operational efficiencies, streamlining its organizational structure, and solidifying liquidity while transforming into a pure-play global Pet and Home & Garden business [7] Market Position - Spectrum Brands has gained 9.6% in stock value over the past year, outperforming the industry, which saw a decline of 3.8% [12] - The company has been proactive in cost management, including fixed cost reductions and decreased advertising spending, to drive margins [8]

(Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Deal Overview On July 2, 2024, Spectrum Brands Holdings Inc. (NYSE: SPB, $85.00; Market Capitalization: $2.5 billion) announced a plan to spin-off its Home & Personal care ("HPC") business. After separation, Spectrum (Stub Co.) will continue focusing on its pure-play Pet, and Home & Garden businesses, which include renowned brands such as Tetra, FURminator, DreamBone, Garden Safe, EcoLogic ...

Core Viewpoint - Spectrum Brands Holdings has undergone significant changes, including the sale of its Hardware and Home Improvement segment for $4.3 billion, which is substantial given its current market capitalization of $2.60 billion. The company is also actively managing its debt, which is expected to improve its financial position despite facing revenue declines and operational challenges [3][9][20]. Financial Developments - As of the end of Q2, Spectrum Brands had cash and cash equivalents of nearly $1.25 billion and is buying back approximately $1.17 billion worth of debt, which will reduce annual interest expenses by about $51.3 million [2][4]. - The company has issued $300 million in exchangeable senior notes due in 2029, with a low interest rate of 3.375%, and has the option for initial purchasers to buy an additional $50 million [14][19]. - The net proceeds from this issuance are expected to be $291.6 million, and the company plans to allocate $50 million for stock buybacks [7][19]. Revenue and Profitability - Spectrum Brands reported a 6.8% decline in revenue from $3.13 billion to $2.92 billion from 2022 to 2023, with the Home and Personal Care segment experiencing a 9.3% drop [9][10]. - The company's net loss increased from $77 million to $233.7 million, with significant impairments totaling $175.8 million [10][18]. - In the first half of the 2024 fiscal year, revenue fell 2.2% to $1.41 billion, primarily due to a 5% decline in the Home and Personal Care segment [18]. Operational Performance - Despite revenue declines, the company reported improvements in its bottom line, transitioning from a net loss of $74.6 million to a profit of $90.2 million in the first half of the 2024 fiscal year [18]. - EBITDA increased from $90.8 million to $196.6 million, indicating operational improvements despite challenges [18][19]. Valuation and Market Position - Spectrum Brands is currently valued at an EV/EBITDA ratio of 8.4, making it the cheapest among its peers, which include companies with significantly higher ratios [21]. - The company is expected to see EBITDA growth in the low double-digit range, with a projected EBITDA of approximately $341 million for the current year [19].

Driven by such upsides, the stock has gained 20.4% in the past year, outperforming the industry's 0.3% growth. Analysts seem quite optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is pegged at $2.92 billion and $4.68, respectively, indicating year-over-year growth of 0.1% and 205.9%. Delving Deeper Spectrum Brands' initiatives like pricing, cost improvements and a favorable mix have been driving margins for a while now. The c ...

Driven by improved pricing and cost improvements, the gross margin expanded 870 bps to 38.1% in secondquarter fiscal 2024, whereas gross profit improved 27.5% year over year. Adjusted EBITDA advanced 120.2% year over year to $112.3 million in the fiscal second quarter. The adjusted EBITDA margin expanded 860 bps year over year to 15.6%, driven by better gross margins and lower operating expenses. The Zacks Consensus Estimate for Lifetime Brands' current financial year's sales and earnings per share suggests ...

Spectrum Brands Holdings Inc. (SPB) is benefiting from increased pricing, cost improvements and a favorable mix. The company is progressing well with its Global Productivity Improvement Plan, which aims at improving operating efficiency and effectiveness. In the latest developments, the company unveiled that its fully-owned subsidiary, Spectrum Brands, Inc., offered $300 million in total principal amount of its 3.375% exchangeable senior notes due 2029 in a private placement to eligible purchasers under Rul ...