Household products company Spectrum Brands (NYSE: SPB) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
Spectrum Brands beat analysts’ revenue expectations last quarter, reporting revenues of $753.3 million, up 7.7% year on year. It was an impressive quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Spectrum Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Spectrum Brands’s revenue to decline 2.5% year on year, improving from the 5.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Spectrum Brands has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Spectrum Brands’s peers in the household products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Clorox delivered year-on-year revenue growth of 33.3%, beating analysts’ expectations by 1.5%, and Procter & Gamble reported revenues up 4%, topping estimates by 2%. Clorox traded up 4.3% following the results while Procter & Gamble was also up 2.7%.
Read our full analysis of Clorox’s results here and Procter & Gamble’s results here.
There has been positive sentiment among investors in the household products segment, with share prices up 7.5% on average over the last month. Spectrum Brands is up 15% during the same time and is heading into earnings with an average analyst price target of $98.57 (compared to the current share price of $88.68).
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