Spectrum Brands (NYSE:SPB) Shares Gap Down on Disappointing Earnings

Spectrum Brands Holdings, Inc. (NYSE:SPB) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $93.86, but opened at $90.95. Spectrum Brands shares last traded at $89.10, with a volume of 35,035 shares trading hands.

The company reported $0.97 earnings per share for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.16). Spectrum Brands had a net margin of 3.86% and a return on equity of 6.84%. The business had revenue of $773.70 million for the quarter, compared to analyst estimates of $747.80 million. During the same period in the prior year, the business earned $1.36 earnings per share. The company’s revenue for the quarter was up 4.5% on a year-over-year basis.

Spectrum Brands Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 17th. Stockholders of record on Tuesday, November 26th will be given a dividend of $0.47 per share. This is a boost from Spectrum Brands’s previous quarterly dividend of $0.42. The ex-dividend date is Tuesday, November 26th. This represents a $1.88 annualized dividend and a dividend yield of 2.13%. Spectrum Brands’s payout ratio is currently 47.46%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft upped their price objective on Spectrum Brands from $91.00 to $94.00 and gave the company a “hold” rating in a report on Friday, August 9th. UBS Group increased their price target on shares of Spectrum Brands from $111.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, August 9th. Finally, Wells Fargo & Company boosted their price objective on shares of Spectrum Brands from $87.00 to $90.00 and gave the company an “equal weight” rating in a report on Friday, August 9th. Five analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $101.88.

Institutional Investors Weigh In On Spectrum Brands

Institutional investors have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. lifted its stake in shares of Spectrum Brands by 5.7% in the 1st quarter. Russell Investments Group Ltd. now owns 54,154 shares of the company’s stock valued at $4,820,000 after purchasing an additional 2,927 shares during the period. Pinnacle Wealth Planning Services Inc. bought a new position in shares of Spectrum Brands during the 1st quarter worth approximately $209,000. Mitsubishi UFJ Trust & Banking Corp acquired a new stake in shares of Spectrum Brands during the 1st quarter worth approximately $42,000. CANADA LIFE ASSURANCE Co increased its stake in shares of Spectrum Brands by 19.2% in the 1st quarter. CANADA LIFE ASSURANCE Co now owns 44,827 shares of the company’s stock valued at $3,995,000 after acquiring an additional 7,227 shares in the last quarter. Finally, Natixis lifted its position in shares of Spectrum Brands by 402.5% during the 1st quarter. Natixis now owns 28,589 shares of the company’s stock valued at $2,545,000 after acquiring an additional 22,900 shares during the period.

Spectrum Brands Stock Performance

The company has a quick ratio of 1.61, a current ratio of 2.28 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $2.47 billion, a P/E ratio of 24.91, a price-to-earnings-growth ratio of 0.26 and a beta of 1.23. The company’s 50 day moving average is $91.57 and its 200-day moving average is $89.38.

Spectrum Brands Company Profile

Spectrum Brands Holdings, Inc operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand.