U.S. Markets closed

Factors to Know Ahead of Spectrum Brands' (SPB) Q4 Earnings

Zacks Equity Research

Spectrum Brands Holdings, Inc. SPB is scheduled to report fourth-quarter fiscal 2019 numbers on Nov 13, before the opening bell.

Notably, the company’s earnings outpaced the Zacks Consensus Estimate by 10.7% in the preceding quarter. However, the bottom line lagged the consensus estimate by 50.3%, on average, over the trailing four quarters.

Further, the Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $1.09, suggests growth of 38% from the year-ago period’s reported figure. Notably, the consensus estimate has been unchanged in the past 30 days. The consensus mark for sales is pegged at $994.9 million, indicating growth of 26.3% from the year-ago quarter’s reported figure.

Spectrum Brands Holdings Inc. Price and EPS Surprise

 

Spectrum Brands Holdings Inc. Price and EPS Surprise

Spectrum Brands Holdings Inc. price-eps-surprise | Spectrum Brands Holdings Inc. Quote

Key Factors to Note

Spectrum Brands has been gaining from productivity efforts, favorable pricing and value-creating initiatives. The company’s fiscal fourth-quarter results are expected to reflect benefits from Global Productivity Improvement Plan, which is aimed at improving its operating efficiency and effectiveness. The plan targets making growth investments as well as enhancing consumer insights, marketing, and research and development.

Spectrum Brands’ fiscal fourth-quarter results are expected to reflect gains from its robust brand portfolio and agreements — including mergers, acquisitions and divestitures. Robust Global Pet Care business, on strength in companion animal and aquatics categories, might have aided the top line in the fiscal fourth quarter.

However, higher distribution and logistics costs, tariffs, and input cost inflation might have hurt the company’s adjusted EBITDA and overall profits in the fiscal fourth quarter. Adverse foreign currency movements and unfavorable weather in Home & Garden might have remained deterrents.

What the Zacks Model Unveils

Our proven model predicts 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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The company has an Earnings ESP of +2.60% and a Zacks Rank #3.

Other Stocks With Favorable Combination

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

Target Corporation TGT has an Earnings ESP of +1.95%. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Home Depot, Inc HD currently has an Earnings ESP of +0.22% and a Zacks Rank #2.

lululemon athletica inc LULU presently has an Earnings ESP of +1.54% and a Zacks Rank #3.

Today's Best Stocks from Zacks
 
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


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
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
 
lululemon athletica inc. (LULU) : Free Stock Analysis Report
 
Target Corporation (TGT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.