Household products company Spectrum Brands (NYSE: SPB) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
Spectrum Brands beat analysts’ revenue expectations last quarter, reporting revenues of $677 million, down 3.3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Spectrum Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Spectrum Brands’s revenue to be flat year on year, improving from the 6% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Spectrum Brands has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Spectrum Brands’s peers in the household products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Energizer’s revenues decreased 3% year on year, missing analysts’ expectations by 3.4%, and Procter & Gamble reported revenues up 7.4%, topping estimates by 3.6%. Procter & Gamble traded up 1.8% following the results.
Read our full analysis of Energizer’s results here and Procter & Gamble’s results here.
Investors in the household products segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Spectrum Brands is up 7.6% during the same time and is heading into earnings with an average analyst price target of $85.29 (compared to the current share price of $82.37).
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