Spectrum Brands Holdings, Inc. (NYSE: SPB) Earnings Preview

• Earnings per share (EPS) is expected to be $1.13, marking a 16.9% decline year-over-year.
• Revenue is projected at $740 million, slightly down by 0.1% from the same quarter last year.
• The company has faced a negative earnings surprise of 18.5% in the previous quarter but has an average earnings surprise of 95.8% over the last four quarters.

Spectrum Brands Holdings, Inc. (NYSE:SPB) is a global leader in branded consumer products and home essentials. The company is set to release its fiscal 2024 fourth-quarter earnings on November 15, 2024. Analysts expect SPB to report earnings per share (EPS) of $1.13, a 16.9% decline from the previous year. Revenue is projected to be $740 million, slightly down by 0.1% from the same quarter last year.

The consensus EPS estimate has been revised downward by 3.1% over the past month, reflecting a reassessment by analysts. This revision is significant as it can influence investor behavior and impact the stock's short-term price performance. Despite the anticipated declines, Spectrum Brands is expected to benefit from pricing actions, cost efficiencies, and a favorable product mix.

However, weak demand for small kitchen appliances may offset these positive factors. In the previous quarter, Spectrum Brands experienced a negative earnings surprise of 18.5%, although it has averaged an earnings surprise of 95.8% over the last four quarters. This indicates that while the company has faced challenges, it has also exceeded expectations in the past.

Spectrum Brands' financial metrics provide further insight into its performance. The company has a price-to-earnings (P/E) ratio of approximately 23.94, indicating investor willingness to pay for each dollar of earnings. Its price-to-sales ratio is about 0.90, suggesting a reasonable market value relative to its revenue. The enterprise value to sales ratio is around 1.07, reflecting the company's total value compared to its sales.

The enterprise value to operating cash flow ratio is negative at -7.03, which may indicate challenges in generating cash flow relative to its enterprise value. However, the debt-to-equity ratio is about 0.27, showing a relatively low level of debt compared to equity. Additionally, the current ratio is 2.28, suggesting a strong ability to cover short-term liabilities with short-term assets.