Household products company Spectrum Brands (NYSE:SPB) will be announcing earnings results this Thursday before market hours. Here’s what investors should know.
Spectrum Brands missed analysts’ revenue expectations by 5.5% last quarter, reporting revenues of $699.6 million, down 10.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ organic revenue estimates.
Is Spectrum Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Spectrum Brands’s revenue to decline 4.2% year on year to $741.3 million, a reversal from the 4.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Spectrum Brands has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Spectrum Brands’s peers in the household products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Clorox’s revenues decreased 18.9% year on year, beating analysts’ expectations by 2%, and WD-40 reported revenues up 4.8%, topping estimates by 6.2%. Clorox traded up 1.3% following the results while WD-40 was also up 2.6%.
Read our full analysis of Clorox’s results here and WD-40’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the household products stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.2% on average over the last month. Spectrum Brands is up 3.6% during the same time and is heading into earnings with an average analyst price target of $78 (compared to the current share price of $52.59).
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