Spectrum Brands Q4 Earnings Upcoming: Is it the Right Time to Invest?

Spectrum Brands Holdings, Inc. SPB is expected to register top and bottom-line decline when it reports fourth-quarter fiscal 2024 results on Nov. 15, before the opening bell. The Zacks Consensus Estimate for SPB’s fiscal fourth-quarter revenues is pegged at $740.1 million, indicating a decline of 1% from the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for Spectrum Brands’ fiscal fourth-quarter earnings per share (EPS) is pegged at $1.13 per share, indicating a decline of 16.9% from the figure reported in the year-ago quarter. The consensus mark for EPS has moved down 1.7% in the past 30 days.In the last reported quarter, the company delivered a negative earnings surprise of 18.5%. SPB has recorded an earnings surprise of 95.8% in the trailing four quarters, on average.What the Zacks Model Unveils for SPBOur proven model does not conclusively predict an earnings beat for Spectrum Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Spectrum Brands has an Earnings ESP of +10.13% and a Zacks Rank #4 (Sell).Trends to Watch for SPB's Q4 EaarningsSpectrum Brands’ fourth-quarter fiscal 2024 results are expected to benefit from pricing actions, cost efficiencies, volume-driven return across all three segments and a favorable product mix, all of which are expected to have contributed to improved margins. The company’s proactive cost-cutting measures, initiated in the second half of fiscal 2022, include permanent reductions in salaried headcount and cuts to advertising and promotional spending, resulting in a more disciplined cost structure. Gains from these are expected to have aided gross margin in the to-be-reported quarter.Additionally, the company’s fiscal fourth quarter is expected to reflect gains from the Global Productivity Improvement Plan (GPIP), innovations, and strategic transformation efforts. The ongoing GPIP plan focuses on enhancing operational efficiency and reinvesting savings into growth initiatives like innovation, brand advertising and research and development (R&D).A significant portion of the savings from this strategy is expected to be reinvested into growth initiatives, consumer insights, R&D and marketing across all business segments. This plan aims to drive value creation and ensure sustainable long-term growth for the company.To drive top-line growth, Spectrum Brands increased its investments in brand advertising and innovation by approximately $23 million year over year and is on track to invest an additional $50 million in fiscal 2024. These investments are aimed at strengthening its market presence.Spectrum Brands Holdings Inc. Price and EPS Surprise Spectrum Brands Holdings Inc. price-eps-surprise | Spectrum Brands Holdings Inc. QuoteThe company has been witnessing robust growth in the e-commerce and brick-and-mortar channels. SPB has been streamlining its organizational structure. Such strengths are likely to have aided the bottom-line performance. Its Home & Personal Care segment is expected to have benefited from solid e-commerce growth fueled by savvy digital marketing. On the last reported quarter’s earnings call, management remained optimistic about the upward trajectory of its e-commerce business, with strong recovery noted in small kitchen appliances and global aquatics.We note that the Zacks Consensus Estimate for SPB’s Home & Personal Care segment’s sales is pegged at $316 million for fourth-quarter fiscal 2024, down 2.1% year over year. The consensus estimate for Global Pet Care segment revenues indicates 3.1% year-over-year growth to $301 million, while Home & Garden segment revenues are pegged at $129 million, implying 3.2% growth year over year.However, soft demand for small kitchen appliances, volume declines in certain pet channels, and the impact of SKU rationalizations might have continued to act as deterrents. The company has been grappling with geopolitical and macroeconomic uncertainty for a while now. In addition, foreign currency translations are acting as headwinds. These limitations are expected to have hurt the top line in the fiscal third quarter.SPB Stock’s Price Performance & Valuation PictureFrom a valuation perspective, Dillard’s is trading at a premium relative to industry benchmarks. With a forward 12-month price-to-earnings ratio of 14.89X, which is below the five-year high of 57.4X but higher than the Consumer Products – Discretionary industry’s average of 13.22X.The recent market movements show that SPB’s shares have gained 4.4% in the past three months against the industry's 16.8% decline.Image Source: Zacks Investment ResearchStocks With the Favorable CombinationHere are three companies, which, according to our model, have the right combination of elements to post an earnings beat this season:The Honest Company HNST currently has an Earnings ESP of +69.23% and a Zacks Rank #3. The company is expected to register an increase in the top and bottom lines when it reports third-quarter 2024 results. The Zacks Consensus Estimate for quarterly loss per share of 3 cents indicates a narrowed loss from 9 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for HNST’s revenues is pegged at $92.8 million, which implies a growth of 7.7% from the year-ago quarter. HNST has a trailing four-quarter earnings surprise of 61.3%, on average.lululemon athletica LULU currently has an Earnings ESP of +15.20% and a Zacks Rank #3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.4 billion, which indicates an increase of 6.8% from the prior-year quarter.The consensus estimate for LULU’s quarterly earnings per share of $2.73 indicates a rise of 7.9% from the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 7.9%, on average.Ollie's Bargain Outlet OLLI currently has an Earnings ESP of +1.50% and a Zacks Rank #3. OLLI is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $519 million, which indicates 8.1% growth from the prior-year quarter.The consensus estimate for OLLI’s earnings is pegged at 57 cents per share, which implies a 11.8% increase from the year-ago quarter's actual. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.Free Report: 5 Clean Energy Stocks with Massive UpsideEnergy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.Now state-of-the-art technology is paving the way for clean energy sources to overtake “old-fashioned” fossil fuels. Trillions of dollars are already pouring into clean energy initiatives, from solar power to hydrogen fuel cells.Emerging leaders from this space could be some of the most exciting stocks in your portfolio.Download Nuclear to Solar: 5 Stocks Powering the Future to see Zacks’ top picks free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report lululemon athletica inc. (LULU): Free Stock Analysis Report Spectrum Brands Holdings Inc. (SPB): Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis Report The Honest Company, Inc. (HNST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks