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Spectrum Brands (SPB) Q2 Earnings: A Beat in the Cards?
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Spectrum Brands Holdings Inc. (SPB - Free Report) is slated to report second-quarter fiscal 2017 results on May 2. Last quarter, the company delivered a positive earnings surprise of 4.3%.
Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 8.9%. Let’s see how things are shaping up for this announcement.
What to Expect?
The question lingering in investors’ minds now is whether Spectrum Brands will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $1.26, reflecting a year-over-year increase of nearly 9%. We note that the Zacks Consensus Estimate has decreased by a penny in the past 7 days. Analysts polled by Zacks expect revenues of $1,222 million compared with $1,210 million reported in the year-ago quarter.
We noted that the stock has outperformed both the Zacks categorized Consumer Product-Miscellaneous Staples industry and the S&P 500 index in the past one year. The company’s shares have gained 31%, while the Zacks categorized industry and the S&P 500 have increased 3.1% and 12.2%, respectively.
Factors Influencing This Quarter
The company is gaining from the introduction of innovative products in all categories and persistent leverage of its global infrastructure and shared services. Further, the company is on track with its strategy of making acquisitions and exiting underperforming businesses to aid in improving profitability, margins and free cash flow.
Spectrum Brands expects fiscal 2017 to witness sturdy sales and earnings growth on the back of global expansion, innovations, cost control and supply chain efficiencies. Also, the company expects free cash flow to rise nearly 10% in the fiscal year. For fiscal 2017, Spectrum Brands expects net sales to grow more than category rates, somewhat offset by the unfavorable impact in the range of 100–150 basis points from the lingering foreign exchange headwinds.
Likely Earnings Beat in the Cards
Our proven model shows that Spectrum Brands is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate stands at $1.27, while the Zacks Consensus Estimate is pegged lower at $1.26. So the ensuing difference – the Earnings ESP – is of +0.79%. A positive ESP combined with the company’s Zacks Rank #3, makes us reasonably confident of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Spectrum Brands Holdings, Inc. Price, Consensus and EPS Surprise
Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3.
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) currently has an Earnings ESP of +17.24% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Spectrum Brands (SPB) Q2 Earnings: A Beat in the Cards?
Spectrum Brands Holdings Inc. (SPB - Free Report) is slated to report second-quarter fiscal 2017 results on May 2. Last quarter, the company delivered a positive earnings surprise of 4.3%.
Notably, the company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters by an average of 8.9%. Let’s see how things are shaping up for this announcement.
What to Expect?
The question lingering in investors’ minds now is whether Spectrum Brands will be able to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $1.26, reflecting a year-over-year increase of nearly 9%. We note that the Zacks Consensus Estimate has decreased by a penny in the past 7 days. Analysts polled by Zacks expect revenues of $1,222 million compared with $1,210 million reported in the year-ago quarter.
We noted that the stock has outperformed both the Zacks categorized Consumer Product-Miscellaneous Staples industry and the S&P 500 index in the past one year. The company’s shares have gained 31%, while the Zacks categorized industry and the S&P 500 have increased 3.1% and 12.2%, respectively.
Factors Influencing This Quarter
The company is gaining from the introduction of innovative products in all categories and persistent leverage of its global infrastructure and shared services. Further, the company is on track with its strategy of making acquisitions and exiting underperforming businesses to aid in improving profitability, margins and free cash flow.
Spectrum Brands expects fiscal 2017 to witness sturdy sales and earnings growth on the back of global expansion, innovations, cost control and supply chain efficiencies. Also, the company expects free cash flow to rise nearly 10% in the fiscal year. For fiscal 2017, Spectrum Brands expects net sales to grow more than category rates, somewhat offset by the unfavorable impact in the range of 100–150 basis points from the lingering foreign exchange headwinds.
Likely Earnings Beat in the Cards
Our proven model shows that Spectrum Brands is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. The Most Accurate estimate stands at $1.27, while the Zacks Consensus Estimate is pegged lower at $1.26. So the ensuing difference – the Earnings ESP – is of +0.79%. A positive ESP combined with the company’s Zacks Rank #3, makes us reasonably confident of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Spectrum Brands Holdings, Inc. Price, Consensus and EPS Surprise
Spectrum Brands Holdings, Inc. Price, Consensus and EPS Surprise | Spectrum Brands Holdings, Inc. Quote
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Amazon.com, Inc. (AMZN - Free Report) currently has an Earnings ESP of +4.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3.
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) currently has an Earnings ESP of +17.24% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>