Spectrum Brands (SPB) Q4 Earnings Report Preview: What To Look For

Household products company Spectrum Brands (NYSE:SPB) will be reporting earnings this Thursday before market open. Here’s what you need to know.

Spectrum Brands missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $733.5 million, down 5.2% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ gross margin 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, analysts are expecting Spectrum Brands’s revenue to decline 4.5% year on year to $668.8 million, a reversal from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Spectrum Brands has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Spectrum Brands’s peers in the household products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Clorox posted flat year-on-year revenue, beating analysts’ expectations by 1.9%, and Colgate-Palmolive reported revenues up 5.8%, topping estimates by 1.7%. Colgate-Palmolive traded up 7.8% following the results.

Read our full analysis of Clorox’s results here and Colgate-Palmolive’s results here.

There has been positive sentiment among investors in the household products segment, with share prices up 9% on average over the last month. Spectrum Brands is up 10.9% during the same time and is heading into earnings with an average analyst price target of $77.71 (compared to the current share price of $66.99).

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