Yahoo Finance Cost Inflation Likely to Ail Spectrum Brands' (SPB) Q1 Earnings
Spectrum Brands Holdings, Inc. SPB is slated to report first-quarter fiscal 2023 results on Feb 10, before the opening bell.
The Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of 14 cents per share, which indicates a decrease of 133.3% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $774.7 million, indicating growth of 2.3% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered a negative earnings surprise of 53.9%. Also, it delivered a negative earnings surprise of 83.8%, on average, in the trailing four quarters.
Spectrum Brands Holdings Inc. Price and EPS Surprise
Spectrum Brands Holdings Inc. price-eps-surprise | Spectrum Brands Holdings Inc. Quote
Factors to Note
Spectrum Brands has been reeling under high input cost inflation, supply-chain disruptions and currency headwinds. The company has been witnessing muted demand, adverse weather conditions and reduced replenishment orders stemming from efforts to lower high inventory levels. Also, the ongoing tough macroeconomic environment has been concerning.
Elevated supply-chain costs, stemming from port slowdowns and high inventory throughput, are anticipated to have hurt the fiscal first-quarter performance. The adverse impacts of foreign currency are expected to have been concerning.
However, the company has been gaining from strength across segments and pricing actions. Contribution from the recently acquired Tristar business, driven by its direct-to-consumer capabilities and innovation pipeline, bodes well. SPB has also been on track with its Global Productivity Improvement Plan, which is likely to have aided its performance in the fiscal first quarter.
What the Zacks Model Unveils
Our 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 to buy or sell before they’re reported with our Earnings ESP Filter.
Spectrum Brands has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -119.51%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale BJ currently has an Earnings ESP of +18.48% and a Zacks Rank #3. BJ is likely to register bottom and top-line growth when it reports fourth-quarter fiscal 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.9 billion, suggesting 12.5% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal fourth-quarter earnings is pegged at 88 cents, suggesting 10% growth from 80 cents reported in the year-ago quarter. The consensus mark has moved down 2.3% in the past 30 days.
Crocs CROX currently has an Earnings ESP of +1.79% and a Zacks Rank #3. CROX is likely to register top-line growth when it reports fourth-quarter 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $938.5 million, suggesting 60% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Crocs fourth-quarter earnings is pegged at $2.15, suggesting no year-over-year change. The consensus mark has moved up 7% in the past 30 days.
Red Rock Resorts RRR currently has an Earnings ESP of +17.33% and a Zacks Rank #3. RRR is likely to register bottom-line growth when it reports fourth-quarter 2022. The Zacks Consensus Estimate for its quarterly revenues is pegged at $421.3 million, suggesting a 0.3% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Red Rock Resorts’ fourth-quarter earnings is pegged at 56 cents, suggesting 1.8% growth from 55 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 60 days.
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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
