Spectrum Brands (SPB) reported strong year-over-year fiscal Q3 results, driven by higher volumes and improvement in productivity during the quarter. However, the home-essentials company’s earnings came in line with analysts’ expectations, while revenues lagged.
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The company reported adjusted EPS of $1.57 per share, which increased 15.4% from the same quarter last year. Net sales jumped 18.1% to $1.16 billion, coming in below the $1.18 billion estimated by the analysts.
Adjusted EBITDA margin was 16.2%, an improvement from 15.5% in the prior year quarter. (See Spectrum Brands stock charts on TipRanks)
Chairman and CEO of Spectrum Brands, David Maura, said “We will continue to focus on disciplined execution of our winning playbook, investing in our people, continuing to drive a culture of servant leadership, empowering and resourcing our teams to win in the market place with news and excitement from new product introductions.”
On July 15, Oppenheimer analyst Ian Zaffino reiterated a Buy rating on the stock with a price target of $110 (35.6% upside potential).
Zaffino noted, “We believe the company is relatively underfollowed with a well-incentivized management team and strong FCF generation. Management has successfully stabilized its business units.”
The stock has a Strong Buy consensus rating based on five Buys and one Hold. The average Spectrum Brands price target stands at $108.83 and implies upside potential of 34.2% from current levels.
TipRanks data shows that financial blogger opinions are 100% Bullish on SPB, compared to a sector average of 72%.
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