Spectrum Brands Holdings Misses Where It Counts

Spectrum Brands Holdings (NYS: SPB) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q2), Spectrum Brands Holdings beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP loss per share dropped.

Gross margins dropped, operating margins improved, net margins grew.

Revenue details
Spectrum Brands Holdings logged revenue of $746.3 million. The two analysts polled by S&P Capital IQ hoped for a top line of $733.9 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $693.9 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.56. The two earnings estimates compiled by S&P Capital IQ averaged $0.48 per share. GAAP EPS were -$0.56 for Q2 against -$0.99 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.1%, 200 basis points worse than the prior-year quarter. Operating margin was 9.0%, 40 basis points better than the prior-year quarter. Net margin was -3.8%, 340 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $828.4 million. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $1.31.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 12 members out of 16 rating the stock outperform, and four members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Spectrum Brands Holdings a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spectrum Brands Holdings is outperform, with an average price target of $37.67.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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