Household products company Spectrum Brands (NYSE:SPB) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Spectrum Brands beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $773.7 million, up 4.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS 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 grow 1.7% year on year to $704.2 million, a reversal from the 3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.
Analysts covering the company have generally 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 four times over the last two years.
Looking at Spectrum Brands’s peers in the household products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Clorox’s revenues decreased 15.3% year on year, beating analysts’ expectations by 2.8%, and Procter & Gamble reported revenues up 2.1%, topping estimates by 1.3%. Clorox traded down 7.2% following the results while Procter & Gamble was up 2.8%.
Read our full analysis of Clorox’s results here and Procter & Gamble’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the household products stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.8% 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 $103.63 (compared to the current share price of $82.79).
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