Core Insights - Spectrum Brands (SPB) reported revenue of $675.7 million for the quarter ended March 2025, reflecting a year-over-year decline of 6% and an EPS of $0.68 compared to $1.62 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $694.91 million, resulting in a surprise of -2.76%, while the EPS surprise was -49.63% against a consensus estimate of $1.35 [1] Financial Performance Metrics - Net Sales in Home & Personal Care (HPC) were $254.20 million, below the average estimate of $261.20 million, marking a -5.1% year-over-year change [4] - Net Sales in Home & Garden (H&G) reached $152.30 million, compared to an estimated $156.85 million, representing a -5.2% change year-over-year [4] - Net Sales in Global Pet Care (GPC) totaled $269.20 million, falling short of the $277.60 million estimate, indicating a -7.1% year-over-year decline [4] - Adjusted EBITDA for Global Pet Care (GPC) was $50 million, below the average estimate of $58.95 million [4] - Adjusted EBITDA for Home & Personal Care (HPC) was $7.30 million, significantly lower than the estimated $17.30 million [4] - Adjusted EBITDA for Home & Garden (H&G) was $26.70 million, compared to the average estimate of $29.15 million [4] Stock Performance - Spectrum's shares have returned -3.2% over the past month, contrasting with the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Spectrum Brands Holdings, Inc. (SPB) is anticipated to report a decline in both revenue and earnings for the second quarter of fiscal 2025, with revenues expected at $694.9 million, a decrease of 3.3% year-over-year, and earnings per share (EPS) projected at $1.35, down 16.7% from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for SPB's fiscal second-quarter revenues is $694.9 million, reflecting a 3.3% decline from the same quarter last year [1]. - The EPS estimate is $1.35, indicating a 16.7% decrease compared to the year-ago quarter, with a 9.4% downward revision in the last 30 days [2]. - In the last reported quarter, SPB achieved an earnings surprise of 12.1%, averaging a 52.5% earnings surprise over the trailing four quarters [2]. Earnings Prediction Model - The current model does not predict an earnings beat for SPB, as it holds an Earnings ESP of +3.70% and a Zacks Rank of 5 (Strong Sell) [3]. Strategic Initiatives - SPB's second-quarter results are expected to reflect the impacts of its aggressive investment strategy focused on long-term value creation, including enhancing brand equity, expanding e-commerce, and modernizing the supply chain [4]. - The expiration of tariff exemptions and new tariffs, particularly affecting the Home & Personal Care (HPC) segment, are anticipated to increase costs and pressure margins [5]. - Ongoing efforts to divest or restructure the HPC segment may face challenges due to geopolitical uncertainties and operational complexities, potentially delaying strategic transactions [6]. Market Conditions - Soft consumer demand in discretionary categories, especially in the HPC segment and small kitchen appliances, may negatively impact overall sales amid macroeconomic pressures like inflation and high interest rates [7]. - The Zacks Consensus Estimate for the HPC segment's sales is $261 million, slightly up from $260 million year-over-year, while the Global Pet Care segment is expected to see revenues of $278 million, down from $291 million [8]. Valuation and Stock Performance - SPB is trading at a forward 12-month price-to-earnings ratio of 12.79X, higher than the industry average of 11.34X [9]. - SPB's shares have declined by 22% over the past three months, compared to a 9.9% decline in the industry [10].