Spectrum Brands (NYSE:SPB) Releases Quarterly Earnings Results, Beats Estimates By $0.49 EPS

Key Points

• Quarterly EPS beat estimates: Spectrum Brands reported $1.39 per share, $0.49 above consensus, while revenue of $713.2 million fell short of estimates and declined 2.8% year over year.
• Fiscal 2027 outlook is cautious: The company expects sales and adjusted EBITDA to be flat to up by low single digits, with roughly $80 million in added input-cost inflation; Home and Personal Care faces weak demand and competitive pressure.
• Global Pet Care and Home and Garden returned to growth, and Spectrum declared a quarterly dividend of $0.47 per share, equivalent to a 2.1% yield.

Spectrum Brands (NYSE:SPB - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $1.39 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.49, FiscalAI reports. Spectrum Brands had a net margin of 2.76% and a return on equity of 10.06%. The business had revenue of $713.20 million for the quarter, compared to analyst estimates of $717.98 million. During the same period in the prior year, the firm posted $2.61 EPS. The company's revenue was down 2.8% on a year-over-year basis.

Here are the key takeaways from Spectrum Brands' conference call:

• For fiscal 2026, adjusted EBITDA excluding tariff refunds rose 9.8% to $317.4 million, and adjusted free cash flow excluding refunds was $188.2 million. Spectrum ended the year with net leverage of 0.77x and said its strong cash generation provides financial flexibility.
• Global Pet Care and Home and Garden returned to growth, with full-year sales up 5.1% and 3.9%, respectively; management said volume growth and share gains supported performance. Home and Personal Care also expanded adjusted EBITDA margin by 130 basis points, excluding tariff refunds.
• Home and Personal Care remains pressured by soft demand, retailer distribution losses, and intensifying competition, particularly online; the company expects sales in the segment to be relatively flat in fiscal 2027.
• For fiscal 2027, Spectrum expects sales and adjusted EBITDA to be flat to up low single digits, while forecasting about $80 million in incremental input-cost inflation. Management expects targeted pricing, lower tariff rates, and cost improvements to offset the pressure, and projects free cash flow at about 50% of adjusted EBITDA.
• Empower Brands, Spectrum’s joint venture with Oaktree, is seeking to acquire Helen of Troy, arguing that scale could support investment and efficiencies; Helen of Troy has rejected the proposal. Spectrum said it remains open to discussions and is evaluating its options.

Spectrum Brands Stock Up 0.3%

NYSE:SPB traded up $0.25 on Thursday, reaching $88.54. The stock had a trading volume of 632,076 shares, compared to its average volume of 377,936. The company has a 50-day moving average of $83.02 and a 200 day moving average of $81.42. The company has a current ratio of 2.41, a quick ratio of 1.61 and a debt-to-equity ratio of 0.33. The stock has a market cap of $2.04 billion, a P/E ratio of 10.97, a price-to-earnings-growth ratio of 3.16 and a beta of 0.81. Spectrum Brands has a 12-month low of $53.21 and a 12-month high of $99.06.

Spectrum Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, November 24th will be given a $0.47 dividend. This represents a $1.88 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, November 24th. Spectrum Brands's dividend payout ratio is presently 57.32%.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Royal Bank Of Canada downgraded shares of Spectrum Brands from an "outperform" rating to a "sector perform" rating and increased their price target for the stock from $85.00 to $92.00 in a research note on Monday, August 10th. Canaccord Genuity Group upped their price objective on Spectrum Brands from $99.00 to $110.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Wall Street Zen downgraded shares of Spectrum Brands from a "buy" rating to a "hold" rating in a research note on Saturday, November 7th. Wells Fargo & Company reduced their price objective on Spectrum Brands from $90.00 to $85.00 and set an "equal weight" rating on the stock in a research note on Monday, October 5th. Finally, Monness Crespi & Hardt upped their target price on Spectrum Brands from $86.00 to $105.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Four analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $97.86.

Key Spectrum Brands News

Here's some of the latest news about SPB:

• Positive Sentiment: For fiscal Q4, Spectrum reported adjusted EPS of $1.39, above the roughly $0.90 analyst consensus. The company also declared a quarterly dividend of $0.47 per share, payable December 15. Spectrum Brands Q4 earnings estimates
• Neutral Sentiment: Empower Brands, jointly owned by Spectrum and Oaktree, is pressing Helen of Troy shareholders to engage on its acquisition proposal. A deal could offer strategic growth, but its outcome is uncertain. Empower Brands open letter
• Negative Sentiment: Helen of Troy’s board unanimously rejected Empower Brands’ unsolicited, non-binding proposal, a setback to the potential transaction. Helen of Troy statement

About Spectrum Brands

Spectrum Brands Holdings, Inc. is a global consumer products company that develops, manufactures and markets products for homes, pets and gardens. Its businesses serve consumers through a portfolio of established brands and retail, e-commerce and other distribution channels. The company's Home and Personal Care products include small kitchen appliances, personal care devices and home appliances sold under brands such as Remington, Russell Hobbs, George Foreman and Black+Decker, under license. Its Global Pet Care business offers products for aquatic pets, companion animals and pet health, including brands such as Tetra, DreamBone and Nature's Miracle.

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