Spectrum Brands (NYSE:SPB) Posts Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Spectrum Brands reported quarterly earnings of $1.24 EPS, missing analysts' expectations of $1.25 EPS by $0.01, with revenue of $699.60 million, down 10.2% year-over-year.
• The company announced a quarterly dividend of $0.47 per share, reflecting an annualized basis of $1.88 and a dividend yield of 3.3%.
• CEO David M. Maura sold 66,000 shares of the company's stock for approximately $4.32 million, representing an 8.36% decrease in his ownership stake.

Spectrum Brands (NYSE:SPB - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.24 EPS for the quarter, missing analysts' consensus estimates of $1.25 by ($0.01), Zacks reports. Spectrum Brands had a net margin of 2.56% and a return on equity of 5.19%. The business had revenue of $699.60 million during the quarter, compared to the consensus estimate of $742.13 million. During the same period in the previous year, the business posted $1.13 EPS. The firm's revenue was down 10.2% on a year-over-year basis.

Spectrum Brands Trading Down 0.9%

Shares of NYSE:SPB traded down $0.50 during trading on Friday, reaching $56.36. 566,093 shares of the company were exchanged, compared to its average volume of 602,890. The firm has a market capitalization of $1.38 billion, a PE ratio of 21.03 and a beta of 0.86. The business's fifty day simple moving average is $55.11 and its 200-day simple moving average is $64.58. Spectrum Brands has a 12-month low of $50.73 and a 12-month high of $96.62. The company has a debt-to-equity ratio of 0.34, a current ratio of 2.34 and a quick ratio of 1.40.

Spectrum Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Tuesday, August 26th will be given a dividend of $0.47 per share. The ex-dividend date of this dividend is Tuesday, August 26th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 3.3%. Spectrum Brands's dividend payout ratio (DPR) is 89.95%.

Insider Activity at Spectrum Brands

In other news, CEO David M. Maura sold 66,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $65.53, for a total transaction of $4,324,980.00. Following the transaction, the chief executive officer directly owned 723,607 shares of the company's stock, valued at approximately $47,417,966.71. This trade represents a 8.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 3.90% of the company's stock.

Hedge Funds Weigh In On Spectrum Brands

A number of institutional investors have recently modified their holdings of the stock. Amundi purchased a new position in shares of Spectrum Brands during the first quarter worth approximately $176,000. Focus Partners Wealth purchased a new position in shares of Spectrum Brands during the first quarter worth approximately $204,000. NewEdge Advisors LLC increased its holdings in Spectrum Brands by 173.0% during the first quarter. NewEdge Advisors LLC now owns 5,389 shares of the company's stock valued at $386,000 after buying an additional 3,415 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Spectrum Brands by 6.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 111,571 shares of the company's stock valued at $7,983,000 after buying an additional 6,321 shares during the period. Finally, Millennium Management LLC increased its holdings in Spectrum Brands by 64.7% during the first quarter. Millennium Management LLC now owns 166,496 shares of the company's stock valued at $11,913,000 after buying an additional 65,424 shares during the period.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. Wall Street Zen raised shares of Spectrum Brands from a "sell" rating to a "hold" rating in a report on Saturday. Wells Fargo & Company decreased their price objective on shares of Spectrum Brands from $65.00 to $60.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 9th. Monness Crespi & Hardt decreased their price objective on shares of Spectrum Brands from $106.00 to $86.00 and set a "buy" rating for the company in a research note on Wednesday, May 14th. UBS Group raised their price objective on shares of Spectrum Brands from $76.00 to $78.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Finally, Canaccord Genuity Group decreased their price objective on shares of Spectrum Brands from $77.00 to $75.00 and set a "buy" rating for the company in a research note on Friday. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $83.83.

About Spectrum Brands

Spectrum Brands Holdings, Inc operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand.

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