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

Shares of Spectrum Brands Holdings, Inc. (NYSE:SPB) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. 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.

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

Spectrum Brands Increases Dividend

The firm also recently announced 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. The ex-dividend date is Tuesday, November 26th. This is a positive change from Spectrum Brands’s previous quarterly dividend of $0.42. This represents a $1.88 annualized dividend and a dividend yield of 2.13%. Spectrum Brands’s dividend payout ratio (DPR) is currently 47.46%.

Wall Street Analyst Weigh In

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

Institutional Trading of Spectrum Brands

Several institutional investors and hedge funds have recently bought and sold shares of the company. Allspring Global Investments Holdings LLC increased its position in shares of Spectrum Brands by 5.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 2,120,102 shares of the company’s stock worth $201,707,000 after purchasing an additional 112,530 shares during the last quarter. Pzena Investment Management LLC increased its holdings in shares of Spectrum Brands by 10.4% in the 3rd quarter. Pzena Investment Management LLC now owns 1,310,861 shares of the company’s stock worth $124,715,000 after buying an additional 123,733 shares during the last quarter. State Street Corp raised its position in shares of Spectrum Brands by 1.3% during the 3rd quarter. State Street Corp now owns 590,222 shares of the company’s stock valued at $56,154,000 after buying an additional 7,783 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Spectrum Brands by 7.6% during the 3rd quarter. Wellington Management Group LLP now owns 513,025 shares of the company’s stock worth $48,809,000 after acquiring an additional 36,063 shares during the last quarter. Finally, Armistice Capital LLC grew its position in Spectrum Brands by 129.4% in the second quarter. Armistice Capital LLC now owns 439,377 shares of the company’s stock worth $37,756,000 after acquiring an additional 247,809 shares in the last quarter.

Spectrum Brands Trading Down 6.1 %

The stock has a 50 day moving average of $91.57 and a 200 day moving average of $89.38. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.28 and a quick ratio of 1.61. The firm has a market cap of $2.47 billion, a P/E ratio of 24.91, a PEG ratio of 0.26 and a beta of 1.23.

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.