Factors Likely to Influence Spectrum Brands' (SPB) Q3 Earnings
Spectrum Brands Holdings, Inc. SPB is slated to report third-quarter fiscal 2023 results on Aug 11, before the opening bell.
The Zacks Consensus Estimate for the fiscal third-quarter bottom line is pegged at 57 cents per share, which indicates an increase of 5.6% from the year-ago quarter’s reported figure. The consensus mark has been unchanged in the past 30 days. However, the consensus mark for revenues is pegged at $781 million, indicating a decline of 4.5% from the figure reported in the year-ago quarter.
We expect fiscal third-quarter net revenues to decline 5.4% year over year to $774 million and the bottom line to increase 1.4% to 55 cents a share.
In the last reported quarter, the company delivered an earnings surprise of 39%. However, it delivered a negative earnings surprise of 52%, 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 progressing well with its Global Productivity Improvement Plan, which aims at improving the company's operating efficiency and effectiveness, while focusing on consumer insights and growth-enabling functions, including technology, marketing and research and development. Majority of the savings are expected to be reinvested into the growth initiatives and consumer insights, R&D and marketing across each of the businesses. This is likely to have aided the fiscal third quarter performance.
The company has been streamlining its organizational structure and re-energizing employee base. It remains focused on transforming into a pure-play global Pet and Home & Garden business.
However, Spectrum Brands has been reeling under continued high retail inventory stemming from lower replenishment orders. The company has also been witnessing difficult economic environment and dismal demand. Also, adverse currency rates are expected to have been concerning.
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 before they’re reported with our Earnings ESP Filter.
Spectrum Brands an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With Favorable Combinations
Here are some companies in the Zacks Consumer Discretionary sector, which have the right combination of elements to post an earnings beat on their respective quarters to be reported.
Townsquare Media TSQ has an Earnings ESP of +4.17% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Townsquare Media’s quarterly revenues is pegged at $121 million, calling for decline of 0.7% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is 48 cents, which suggests a 32.4% increase from the figure reported in the year-ago fiscal quarter. TSQ has a trailing four-quarter earnings surprise, the average being 19.8%.
lululemon athletica LULU currently has an Earnings ESP of +0.03% and a Zacks Rank of 2. LULU is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.20 billion, calling for growth of 15.9% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is $2.52, which suggests a 14.6% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.
PVH Corp PVH currently has an Earnings ESP of +3.56% and a Zacks Rank of 3. PVH is likely to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.20 million, suggesting a 2.8% rise from the figure reported in the prior-year quarter.
The consensus mark for PVH Corp’s second-quarter earnings is pegged at $1.75 per share, suggesting a 15.9% decline from earnings of $2.08 per share reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. PVH has a trailing four-quarter earnings surprise of 20.4%, on average.
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lululemon athletica inc. (LULU) : Free Stock Analysis Report
PVH Corp. (PVH) : Free Stock Analysis Report
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
Townsquare Media, Inc. (TSQ) : Free Stock Analysis Report
