Spectrum Brands (NYSE:SPB) Shares Up 3.9% on Earnings Beat

Key Points

• Spectrum Brands shares rose 3.9% after quarterly EPS of $1.39 beat the $0.90 consensus by $0.49. Revenue was $713.2 million, below estimates, and fell 2.8% year over year; EPS was down from $2.61 a year earlier.
• The company announced a quarterly dividend of $0.47 per share, equivalent to $1.88 annually and a 2.0% yield.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $97.86; four analysts rate the stock Buy and four rate it Hold.

Spectrum Brands Holdings Inc. (NYSE:SPB - Get Free Report) rose 3.9% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $92.75 and last traded at $91.72. 86,195 shares were traded during trading, a decline of 76% from the average session volume of 358,086 shares. The stock had previously closed at $88.29.

The company reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.49. Spectrum Brands had a return on equity of 10.06% and a net margin of 2.76%. The business had revenue of $713.20 million during the quarter, compared to analyst estimates of $717.98 million. During the same quarter in the previous year, the business earned $2.61 earnings per share. The company's revenue for the quarter was down 2.8% compared to the same quarter last year.

Spectrum Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, November 24th will be paid a $0.47 dividend. The ex-dividend date is Tuesday, November 24th. This represents a $1.88 dividend on an annualized basis and a yield of 2.0%. Spectrum Brands's dividend payout ratio (DPR) is presently 57.32%.

Key Headlines Impacting Spectrum Brands

Here are a few of the latest headlines about SPB:

• Positive Sentiment: Adjusted EPS was $1.39, topping the $0.90 consensus estimate by $0.49. The company also reported quarterly profit of $25.8 million, and earnings coverage highlighted margin gains. Spectrum Brands Surpasses Q4 Earnings Estimates Spectrum Brands reports fiscal Q4 profit
• Positive Sentiment: Spectrum Brands declared a quarterly dividend of $0.47 per share, payable December 15 to shareholders of record November 24. The annualized dividend is $1.88 per share.
• Neutral Sentiment: Empower Brands, the home and personal care business jointly owned by Spectrum Brands and Oaktree-managed funds, issued an open letter to Helen of Troy shareholders regarding its previously announced all-cash acquisition proposal. The deal could offer strategic growth, but its impact on Spectrum Brands depends on the proposal’s outcome and terms. Empower Brands Issues Open Letter to Helen of Troy Shareholders

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Spectrum Brands from a "buy" rating to a "hold" rating in a research note on Saturday, November 7th. Oppenheimer upped their price target on shares of Spectrum Brands from $85.00 to $100.00 and gave the stock an "outperform" rating in a report on Monday, August 10th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Spectrum Brands in a research note on Wednesday, November 4th. Wells Fargo & Company decreased their price objective on shares of Spectrum Brands from $90.00 to $85.00 and set an "equal weight" rating for the company in a report on Monday, October 5th. Finally, Deutsche Bank reissued a "hold" rating and issued a $96.00 price objective on shares of Spectrum Brands in a research report on Monday, August 10th. Four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $97.86.

Hedge Funds Weigh In On Spectrum Brands

A number of hedge funds and other institutional investors have recently made changes to their positions in SPB. Advisors Asset Management Inc. bought a new stake in shares of Spectrum Brands in the third quarter valued at about $11,911,000. Landscape Capital Management L.L.C. grew its holdings in Spectrum Brands by 278.1% during the 3rd quarter. Landscape Capital Management L.L.C. now owns 11,871 shares of the company's stock worth $944,000 after acquiring an additional 8,731 shares in the last quarter. Diversified Trust Co purchased a new position in Spectrum Brands during the 3rd quarter valued at about $462,000. Fifth Third Bancorp increased its position in Spectrum Brands by 7.4% during the 3rd quarter. Fifth Third Bancorp now owns 12,746 shares of the company's stock valued at $1,013,000 after purchasing an additional 879 shares during the period. Finally, Ritholtz Wealth Management increased its position in Spectrum Brands by 81.6% during the 3rd quarter. Ritholtz Wealth Management now owns 10,419 shares of the company's stock valued at $828,000 after purchasing an additional 4,681 shares during the period.

Spectrum Brands Stock Performance

The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.61 and a current ratio of 2.41. The firm has a market cap of $2.13 billion, a P/E ratio of 28.29, a price-to-earnings-growth ratio of 3.18 and a beta of 0.81. The firm's fifty day moving average price is $83.04 and its 200 day moving average price is $81.30.

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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