Spectrum Brands (NYSE:SPB) Issues Quarterly Earnings Results, Beats Estimates By $1.33 EPS

Key Points

• Spectrum Brands significantly beat quarterly estimates: Fiscal Q3 EPS was $2.79 versus the $1.46 consensus, while revenue rose 7.7% year over year to $753.3 million, driven by growth across all three business units.
• Management raised its fiscal 2026 adjusted EBITDA outlook to mid-single-digit growth, supported by pricing, productivity improvements, favorable mix and higher volume. The company also ended the quarter with nearly $260 million in cash and net leverage of about one times.
• Near-term conditions remain mixed: Fourth-quarter performance may moderate due to unfavorable weather, elevated Home & Garden inventories and tough Global Pet Care comparisons, while Home & Personal Care continues to face weak consumer demand and competitive pressure.

Spectrum Brands (NYSE:SPB - Get Free Report) released its earnings results on Friday. The company reported $2.79 earnings per share for the quarter, beating analysts' consensus estimates of $1.46 by $1.33, Zacks reports. The business had revenue of $753.30 million during the quarter, compared to the consensus estimate of $732.19 million. Spectrum Brands had a net margin of 4.47% and a return on equity of 8.23%. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.24 earnings per share.

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

• Q3 net sales rose 7.7% year over year, or 6.6% organically, with growth across all three business units. Home & Garden delivered a record $225 million quarter, while Global Pet Care and Home & Personal Care also posted sales growth.
• Management raised its fiscal 2026 adjusted EBITDA outlook, excluding tariff refunds, to mid-single-digit growth. Adjusted EBITDA excluding refunds increased 27.5% in Q3, supported by pricing, mix, productivity actions, and higher volume.
• Spectrum ended the quarter with nearly $260 million in cash, no revolver borrowings, and net leverage of about one times. The company repurchased approximately $15.8 million of stock and has more than $300 million remaining under its authorization.
• Fourth-quarter performance is expected to moderate as Home & Garden faces unfavorable weather and elevated retailer inventories, while Global Pet Care encounters tough comparisons. Home & Personal Care is still expected to post a full-year sales decline because of weak consumer demand, competition, and a reduced U.S. portfolio.
• The company has recognized substantially all expected IEEPA tariff refunds, with about half received as of the call and most of the remainder expected by year-end. Management emphasized that the refunds are a one-time recovery of prior tariff-related losses, with proceeds intended partly for rehiring and renewed commercial investment.

Spectrum Brands Trading Up 2.3%

Shares of NYSE SPB traded up $2.01 during trading on Friday, reaching $90.27. The company had a trading volume of 766,086 shares, compared to its average volume of 310,697. The stock has a market cap of $2.08 billion, a P/E ratio of 17.23, a PEG ratio of 2.77 and a beta of 0.63. The company's fifty day moving average price is $85.44 and its 200-day moving average price is $79.21. The company has a quick ratio of 1.42, a current ratio of 2.29 and a debt-to-equity ratio of 0.30. Spectrum Brands has a 12 month low of $49.99 and a 12 month high of $99.06.

Spectrum Brands Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Tuesday, August 25th will be paid a $0.47 dividend. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $1.88 annualized dividend and a dividend yield of 2.1%. Spectrum Brands's payout ratio is currently 35.88%.

Insiders Place Their Bets

In other news, CEO David M. Maura bought 2,500 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was acquired at an average price of $72.85 per share, with a total value of $182,125.00. Following the completion of the purchase, the chief executive officer directly owned 790,708 shares of the company's stock, valued at approximately $57,603,077.80. This represents a 0.32% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 4.50% of the company's stock.

Institutional Trading of Spectrum Brands

Several hedge funds have recently modified their holdings of SPB. Invesco Ltd. grew its position in Spectrum Brands by 34.9% in the 4th quarter. Invesco Ltd. now owns 76,529 shares of the company's stock valued at $4,521,000 after purchasing an additional 19,819 shares during the period. Corient Private Wealth LLC lifted its stake in shares of Spectrum Brands by 798.7% in the fourth quarter. Corient Private Wealth LLC now owns 35,425 shares of the company's stock valued at $2,093,000 after buying an additional 31,483 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of Spectrum Brands by 53.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 16,434 shares of the company's stock valued at $971,000 after buying an additional 5,724 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of Spectrum Brands by 4.0% during the fourth quarter. Empowered Funds LLC now owns 89,020 shares of the company's stock valued at $5,259,000 after buying an additional 3,423 shares during the last quarter. Finally, XTX Topco Ltd acquired a new position in shares of Spectrum Brands during the fourth quarter valued at about $424,000.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on SPB. Wells Fargo & Company upped their price target on shares of Spectrum Brands from $80.00 to $85.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 8th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Spectrum Brands in a research report on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $81.00 price target on shares of Spectrum Brands in a research report on Friday, May 8th. Canaccord Genuity Group dropped their price objective on Spectrum Brands from $100.00 to $99.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Finally, Wall Street Zen cut shares of Spectrum Brands from a "buy" rating to a "hold" rating in a research report on Sunday, June 21st. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Spectrum Brands presently has a consensus rating of "Moderate Buy" and an average target price of $87.00.

Key Headlines Impacting Spectrum Brands

Here are the key news stories impacting Spectrum Brands this week:

• Positive Sentiment: Strong earnings and sales beat: Spectrum Brands reported fiscal Q3 earnings of $2.79 per share, well above analyst estimates of approximately $1.46-$1.49 and up from $1.24 a year earlier. Revenue rose 7.7% year over year to $753.3 million, exceeding the $732.2 million consensus estimate. Spectrum Brands Holdings Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Broad-based operating momentum: All three businesses delivered year-over-year top-line growth, while margin expansion supported the earnings outperformance. The Home & Garden segment was a key contributor, with sales increasing 19% year over year. Spectrum Brands' Q3 Earnings Beat, Home & Garden Unit Sales Up 19% Y/Y
• Positive Sentiment: Raised outlook: Management increased its fiscal 2026 EBITDA outlook, reinforcing expectations that the company’s sales growth and margin improvements can continue. The stronger outlook was a central catalyst for the positive investor reaction. Spectrum Brands posts strong earnings beat and raises EBITDA outlook
• Neutral Sentiment: Shareholder returns and sentiment: Spectrum Brands maintained its quarterly dividend at $0.47 per share, payable September 22, and shareholders supported the board and governance proposals at the annual meeting. Brokerages also maintained a consensus “Moderate Buy” recommendation. Spectrum Brands Holdings Declares Quarterly Common Stock Dividend of $0.47 Per Share

Spectrum Brands Company Profile

Spectrum Brands Holdings, Inc is a global consumer products company that develops and markets a diverse portfolio of branded household and personal care products. Organized into four principal business segments—Hardware & Home Improvement, Home & Garden, Pet, and Appliances & Personal Care—the company offers a broad range of items including security and plumbing solutions, small electric appliances, grooming tools, and pet care accessories. Its hardware division features well-known brands such as Kwikset, Baldwin and Pfister, while the home appliance segment is anchored by names like Russell Hobbs and Remington.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source