Spectrum Brands Holdings, Inc. SPB is slated to report third-quarter fiscal 2022 results on Aug 12, before the opening bell. The global consumer products company is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.50 per share, which indicates a decline of 4.5% from the year-ago quarter’s reported figure. The consensus mark has moved down 19.8% in the past 30 days. The consensus mark for revenues is pegged at $918 million, indicating a decline of 21.1% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 2.5%. However, it delivered a negative earnings surprise of 61.8%, 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 witnessing supply-chain disruptions, input cost inflation and higher restructuring costs. Additional headwinds related to the war in Ukraine are likely to have acted as deterrents.
Supply-chain bottlenecks, stemming from the congestion at ports and a reduced freight capacity, as well as elevated freight and raw-material costs, are anticipated to have hurt the fiscal third-quarter performance. Higher marketing investment and product innovation, restructuring initiatives, and strategic transactions are likely to have affected margins. Adverse impacts of inflation are expected to have been concerning.
The company continues to reel under unfavorable foreign currency movements, which might have dented the top line in the fiscal third quarter.
However, Spectrum Brand has been gaining from strength across segments and improved price realization. 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 provided some cushion to the top and bottom-line performances in the fiscal third 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 #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Hyatt Hotels H currently has an Earnings ESP of +216.67% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. Although the Zacks Consensus Estimate for the bottom line moved down from earnings of 2 cents to a loss of a penny per share, it suggests a surge of 99.1% from the year-ago quarter’s reported number.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Hyatt Hotels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.36 billion, suggesting a rise of 105.6% from the figure reported in the prior-year quarter.
Malibu Boats MBUU currently has an Earnings ESP of +3.78% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings stands at $2.31, which indicated a year-over-year improvement of 25.5%. The consensus mark has been unchanged in the past 30 days.
The Zacks Consensus Estimate for Malibu Boats’ quarterly revenues is pegged at $330.8 million, suggesting growth of 19.6% from the year-ago quarter’s reported number. MBU has delivered an earnings beat of 16.1%, on average, in the trailing four quarters.
BJ’s Wholesale BJ currently has an Earnings ESP of +3.61% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at 80 cents per share in the past 30 days, indicating a decline of 2.4% from 82 cents a share registered in the year-ago quarter.
However, BJ’s Wholesale’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which suggests growth of 12% from the figure reported in the prior-year quarter. BJ has delivered an earnings beat of 16.1% in the trailing four quarters, on average.
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