Spectrum Brands Q1 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SPB?
Source: seekingalpha
- Earnings Beat: Spectrum Brands reported a Q1 Non-GAAP EPS of $1.40, exceeding expectations by $0.64, indicating strong profitability despite a slight revenue decline.
- Revenue Decline: The company posted revenues of $677 million, down 3.3% year-over-year, yet still beating market expectations by $9.04 million, demonstrating resilience in a challenging market environment.
- Stable Future Outlook: Spectrum Brands reiterated its fiscal 2026 framework, expecting net sales to be flat to low single-digit growth, along with low single-digit growth in adjusted EBITDA, reflecting confidence in future performance.
- Cash Flow Conversion Target: The company anticipates approximately 50% of adjusted EBITDA will convert to free cash flow, which will enhance financial flexibility and support future growth strategies.
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Analyst Views on SPB
Wall Street analysts forecast SPB stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPB is 56.87 USD with a low forecast of 6.48 USD and a high forecast of 84.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 75.430
Low
6.48
Averages
56.87
High
84.00
Current: 75.430
Low
6.48
Averages
56.87
High
84.00
About SPB
Spectrum Brands Holdings, Inc. is a diversified global branded consumer products and home essentials company. Its segments include Global Pet Care (GPC), Home and Garden (H&G) and Home and Personal Care (HPC). The GPC segment consists of the Company’s global pet care business. H&G segment consists of the Company’s home and garden, insect control and cleaning products business. The HPC segment consists of the Company’s global small kitchen and personal care appliances businesses. Its brands include Good’n’Fun, DreamBone, GOOD BOY, SmartBones, FURminator, Tetra, Marineland, Instant Ocean, and others. Its HPC products are small kitchen appliances including toaster ovens, coffeemakers, blenders, and air fryers; personal care products such as hair dryers, flat irons and straighteners, and rotary and foil electric shavers, among others. It manufactures, markets and distributes its products globally in the North America, Europe, Middle East & Africa, Latin America and Asia-Pacific regions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Spectrum Brands Reports Strong Q1 Results with $300M Buyback
- Earnings Beat: Spectrum Brands reported Q1 earnings of $1.40 per share, surpassing the analyst consensus of $0.76, demonstrating resilience amid macroeconomic challenges and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $677 million, exceeding the analyst estimate of $667.175 million, indicating the effectiveness of its strategic initiatives, particularly in the growth of its Global Pet Care segment.
- Share Buyback Announcement: Spectrum Brands announced a $300 million share buyback plan aimed at enhancing shareholder value and reflecting confidence in future growth, which is expected to further drive stock price appreciation.
- Analyst Rating Adjustments: Analysts from Wells Fargo and Oppenheimer raised their price targets for Spectrum Brands from $62 and $75 to $80 and $85 respectively, reflecting a positive outlook on the company's future performance.
See More
Spectrum Brands Q1 2026 Earnings Call Insights
- Strong Financial Performance: Spectrum Brands reported net sales of $677 million for Q1 2026, with adjusted EBITDA reaching $62.6 million, demonstrating the effectiveness of the company's strategic actions despite external challenges.
- Robust Cash Flow: The company generated nearly $60 million in adjusted free cash flow during the quarter and repurchased approximately 800,000 shares, spending a total of $42.3 million, showcasing strong capital allocation capabilities.
- Return to Growth: The Global Pet Care segment achieved a 5.8% organic net sales increase, while the Home & Personal Care segment saw a 7.6% decline in net sales due to inventory issues and soft demand, reflecting a divergent market trend.
- Stable Future Outlook: Management reiterated expectations for flat to low single-digit growth in net sales and adjusted EBITDA for fiscal 2026, with anticipated recovery in the Home & Garden business in the second half, indicating confidence in market recovery.
See More
Small Caps Shine Amid Market Turmoil, Dividend Appeal Grows
- Small Cap Resilience: Despite a 0.5% decline in the S&P 500 in 2026, the Russell 2000 index has risen by 4%, demonstrating the resilience of small caps amid economic fluctuations, which attracts income-seeking investors.
- Spectrum Brands Beats Expectations: Spectrum Brands' shares have surged 27% in 2026, with a current dividend yield of 2.5%, and the company reported first-quarter results that exceeded market expectations, indicating stable profitability and a full-year revenue growth forecast of flat to low single digits.
- Concentra Group's Strong Performance: Concentra Group's stock has increased nearly 20% in 2026, with a dividend yield of about 1.1%, and preliminary fourth-quarter figures show adjusted earnings of 28 cents per share, surpassing expectations, highlighting its robust performance in occupational health services.
- Acquisition Strategy Resurgence: Concentra has refocused on its acquisition strategy, recently acquiring assets from Reliant Immediate Care in California, which illustrates its proactive positioning in industry consolidation and is expected to enhance its market competitiveness.
See More
Spectrum Brands Q1 Earnings Exceed Expectations
- Earnings Beat: Spectrum Brands reported a Q1 Non-GAAP EPS of $1.40, exceeding expectations by $0.64, indicating strong profitability despite a slight revenue decline.
- Revenue Decline: The company posted revenues of $677 million, down 3.3% year-over-year, yet still beating market expectations by $9.04 million, demonstrating resilience in a challenging market environment.
- Stable Future Outlook: Spectrum Brands reiterated its fiscal 2026 framework, expecting net sales to be flat to low single-digit growth, along with low single-digit growth in adjusted EBITDA, reflecting confidence in future performance.
- Cash Flow Conversion Target: The company anticipates approximately 50% of adjusted EBITDA will convert to free cash flow, which will enhance financial flexibility and support future growth strategies.
See More
Spectrum Brands to Announce Q1 Earnings on February 5
- Earnings Announcement Date: Spectrum Brands is set to release its Q1 fiscal 2023 earnings on February 5 before market open, with consensus EPS estimate at $0.76, reflecting a 25.5% year-over-year decline, and revenue estimate at $667.96 million, down 4.6% year-over-year.
- Performance Expectation Analysis: Over the past two years, Spectrum Brands has only beaten EPS and revenue estimates 50% of the time, indicating uncertainty in its performance, particularly in the current economic climate.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates have experienced one upward revision and two downward changes, reflecting analysts' divergent views on the company's future performance.
- Future Growth Targets: Spectrum Brands aims for low single-digit net sales growth and a 50% free cash flow conversion rate in fiscal 2026, indicating that the company is implementing measures to improve its supply chain to support future growth.
See More
Spectrum Brands Declares Quarterly Dividend of $0.47 per Share
- Quarterly Dividend Announcement: Spectrum Brands has declared a quarterly dividend of $0.47 per share, consistent with previous payouts, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 2.81% reflects the company's appeal in the current market environment, potentially enhancing investor interest in its stock, especially amid rising interest rates.
- Shareholder Record Date: The dividend will be payable on March 10, with a record date of February 17 and an ex-dividend date also on February 17, providing investors with a clear timeline for their investment decisions.
- Future Outlook: Spectrum Brands targets low single-digit net sales growth and a 50% free cash flow conversion rate in fiscal 2026, indicating that the company's efforts in supply chain optimization are expected to gradually materialize, potentially improving its long-term financial health.
See More
Spectrum Brands Reports Strong Q1 Results with $300M Buyback
- Earnings Beat: Spectrum Brands reported Q1 earnings of $1.40 per share, surpassing the analyst consensus of $0.76, demonstrating resilience amid macroeconomic challenges and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $677 million, exceeding the analyst estimate of $667.175 million, indicating the effectiveness of its strategic initiatives, particularly in the growth of its Global Pet Care segment.
- Share Buyback Announcement: Spectrum Brands announced a $300 million share buyback plan aimed at enhancing shareholder value and reflecting confidence in future growth, which is expected to further drive stock price appreciation.
- Analyst Rating Adjustments: Analysts from Wells Fargo and Oppenheimer raised their price targets for Spectrum Brands from $62 and $75 to $80 and $85 respectively, reflecting a positive outlook on the company's future performance.
See More
Spectrum Brands Q1 2026 Earnings Call Insights
- Strong Financial Performance: Spectrum Brands reported net sales of $677 million for Q1 2026, with adjusted EBITDA reaching $62.6 million, demonstrating the effectiveness of the company's strategic actions despite external challenges.
- Robust Cash Flow: The company generated nearly $60 million in adjusted free cash flow during the quarter and repurchased approximately 800,000 shares, spending a total of $42.3 million, showcasing strong capital allocation capabilities.
- Return to Growth: The Global Pet Care segment achieved a 5.8% organic net sales increase, while the Home & Personal Care segment saw a 7.6% decline in net sales due to inventory issues and soft demand, reflecting a divergent market trend.
- Stable Future Outlook: Management reiterated expectations for flat to low single-digit growth in net sales and adjusted EBITDA for fiscal 2026, with anticipated recovery in the Home & Garden business in the second half, indicating confidence in market recovery.
See More
Small Caps Shine Amid Market Turmoil, Dividend Appeal Grows
- Small Cap Resilience: Despite a 0.5% decline in the S&P 500 in 2026, the Russell 2000 index has risen by 4%, demonstrating the resilience of small caps amid economic fluctuations, which attracts income-seeking investors.
- Spectrum Brands Beats Expectations: Spectrum Brands' shares have surged 27% in 2026, with a current dividend yield of 2.5%, and the company reported first-quarter results that exceeded market expectations, indicating stable profitability and a full-year revenue growth forecast of flat to low single digits.
- Concentra Group's Strong Performance: Concentra Group's stock has increased nearly 20% in 2026, with a dividend yield of about 1.1%, and preliminary fourth-quarter figures show adjusted earnings of 28 cents per share, surpassing expectations, highlighting its robust performance in occupational health services.
- Acquisition Strategy Resurgence: Concentra has refocused on its acquisition strategy, recently acquiring assets from Reliant Immediate Care in California, which illustrates its proactive positioning in industry consolidation and is expected to enhance its market competitiveness.
See More
Spectrum Brands Q1 Earnings Exceed Expectations
- Earnings Beat: Spectrum Brands reported a Q1 Non-GAAP EPS of $1.40, exceeding expectations by $0.64, indicating strong profitability despite a slight revenue decline.
- Revenue Decline: The company posted revenues of $677 million, down 3.3% year-over-year, yet still beating market expectations by $9.04 million, demonstrating resilience in a challenging market environment.
- Stable Future Outlook: Spectrum Brands reiterated its fiscal 2026 framework, expecting net sales to be flat to low single-digit growth, along with low single-digit growth in adjusted EBITDA, reflecting confidence in future performance.
- Cash Flow Conversion Target: The company anticipates approximately 50% of adjusted EBITDA will convert to free cash flow, which will enhance financial flexibility and support future growth strategies.
See More
Spectrum Brands to Announce Q1 Earnings on February 5
- Earnings Announcement Date: Spectrum Brands is set to release its Q1 fiscal 2023 earnings on February 5 before market open, with consensus EPS estimate at $0.76, reflecting a 25.5% year-over-year decline, and revenue estimate at $667.96 million, down 4.6% year-over-year.
- Performance Expectation Analysis: Over the past two years, Spectrum Brands has only beaten EPS and revenue estimates 50% of the time, indicating uncertainty in its performance, particularly in the current economic climate.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and three downward adjustments, while revenue estimates have experienced one upward revision and two downward changes, reflecting analysts' divergent views on the company's future performance.
- Future Growth Targets: Spectrum Brands aims for low single-digit net sales growth and a 50% free cash flow conversion rate in fiscal 2026, indicating that the company is implementing measures to improve its supply chain to support future growth.
See More
Spectrum Brands Declares Quarterly Dividend of $0.47 per Share
- Quarterly Dividend Announcement: Spectrum Brands has declared a quarterly dividend of $0.47 per share, consistent with previous payouts, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 2.81% reflects the company's appeal in the current market environment, potentially enhancing investor interest in its stock, especially amid rising interest rates.
- Shareholder Record Date: The dividend will be payable on March 10, with a record date of February 17 and an ex-dividend date also on February 17, providing investors with a clear timeline for their investment decisions.
- Future Outlook: Spectrum Brands targets low single-digit net sales growth and a 50% free cash flow conversion rate in fiscal 2026, indicating that the company's efforts in supply chain optimization are expected to gradually materialize, potentially improving its long-term financial health.
See More
