Spectrum Brands Holdings, Inc. (NYSE:SPB) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Spectrum Brands Holdings, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 15.38% to $0.90 in the quarter versus EPS of $0.78 in the year-earlier quarter.
Revenue: Rose 32.15% to $1.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Spectrum Brands Holdings, Inc. reported adjusted EPS income of $0.90 per share. By that measure, the company missed the mean analyst estimate of $1.10. It missed the average revenue estimate of $1.11 billion.
Quoting Management: “We’re pleased to report record net sales and adjusted EBITDA for the third quarter,” said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings. “HHI, our new acquisition, posted another quarter of double-digit net sales growth at 13 percent. Our third quarter adjusted EBITDA of $188.5 million, including HHI, increased 2 percent, or 3 percent on a constant currency basis, with an adjusted EBITDA margin at a solid 17.3 percent.”
Key Stats (on next page)…
Revenue increased 10.35% from $987.76 million in the previous quarter. EPS increased 104.55% from $0.44 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.92 and has not changed. For the current year, the average estimate has moved down from a profit of $3.20 to a profit of $3.18 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)