Household products company Spectrum Brands (NYSE:SPB) will be reporting earnings this Thursday before the bell. Here’s what to expect.
Spectrum Brands missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $675.7 million, down 6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is Spectrum Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Spectrum Brands’s revenue to decline 5% year on year to $740.1 million, a reversal from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 7 analysts). Spectrum Brands has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Spectrum Brands’s peers in the household products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Clorox delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 3.3%, and Energizer reported revenues up 3.4%, topping estimates by 3.1%. Clorox traded down 1.8% following the results while Energizer was up 34.9%.
Read our full analysis of Clorox’s results here and Energizer’s results here.
Investors in the household products segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Spectrum Brands is down 1.3% during the same time and is heading into earnings with an average analyst price target of $81.29 (compared to the current share price of $54.21).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.