Spectrum Brands Holdings
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.
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 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.
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.
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.
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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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 of Motley 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.