Spectrum Brands (SPB) Q1 Earnings Top Estimates

Group 1: Earnings Performance - Spectrum Brands reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of$ 0.91 per share, and up from $0.78 per share a year ago, representing an earnings surprise of 12.09% [1] - The company posted revenues of$ 700.2 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.19%, but up from $692.2 million year-over-year [2] - Over the last four quarters, Spectrum has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Spectrum shares have declined approximately 1.9% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is$ 1.52 on revenues of $724.64 million, and for the current fiscal year, it is$ 5.17 on revenues of $2.98 billion [7] - The estimate revisions trend for Spectrum is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Consumer Products - Discretionary industry, to which Spectrum belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]