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

Spectrum Brands Holdings, Inc. (NYSE:SPB)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $61.88, but opened at $58.31. Spectrum Brands shares last traded at $62.21, with a volume of 133,753 shares traded.

The company reported $0.68 earnings per share for the quarter, missing the consensus estimate of $1.35 by ($0.67). Spectrum Brands had a return on equity of 6.44% and a net margin of 4.01%. The company had revenue of $675.70 million for the quarter, compared to analyst estimates of $701.00 million. During the same period in the prior year, the business earned $1.62 earnings per share. Spectrum Brands’s revenue for the quarter was down 6.0% compared to the same quarter last year.

Spectrum Brands Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 17th. Shareholders of record on Tuesday, May 27th will be given a dividend of $0.47 per share. The ex-dividend date is Tuesday, May 27th. This represents a $1.88 dividend on an annualized basis and a yield of 3.04%. Spectrum Brands’s payout ratio is 46.19%.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Royal Bank of Canada cut their price objective on Spectrum Brands from $114.00 to $110.00 and set an “outperform” rating for the company in a research report on Friday, February 7th. Canaccord Genuity Group raised shares of Spectrum Brands from a “hold” rating to a “buy” rating and boosted their target price for the company from $94.00 to $102.00 in a research note on Friday, February 7th. Wells Fargo & Company lowered their price target on shares of Spectrum Brands from $75.00 to $65.00 and set an “equal weight” rating for the company in a report on Wednesday, April 16th. Finally, UBS Group upped their price objective on shares of Spectrum Brands from $76.00 to $78.00 and gave the company a “buy” rating in a research note on Friday. Two research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $95.71.

Institutional Investors Weigh In On Spectrum Brands

A number of institutional investors have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. grew its stake in shares of Spectrum Brands by 1.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 450,807 shares of the company’s stock valued at $38,089,000 after buying an additional 7,198 shares during the period. Empowered Funds LLC purchased a new stake in Spectrum Brands during the fourth quarter valued at about $387,000. SG Americas Securities LLC increased its stake in Spectrum Brands by 478.4% during the fourth quarter. SG Americas Securities LLC now owns 13,500 shares of the company’s stock worth $1,141,000 after acquiring an additional 11,166 shares during the last quarter. Wealthfront Advisers LLC purchased a new position in shares of Spectrum Brands in the 4th quarter worth about $16,606,000. Finally, Raymond James Financial Inc. acquired a new position in shares of Spectrum Brands in the 4th quarter valued at about $972,000.

Spectrum Brands Stock Down 3.5 %

The firm has a 50 day moving average price of $66.03 and a two-hundred day moving average price of $79.22. The firm has a market capitalization of $1.63 billion, a price-to-earnings ratio of 15.19, a price-to-earnings-growth ratio of 1.70 and a beta of 1.00. The company has a current ratio of 2.40, a quick ratio of 1.53 and a debt-to-equity ratio of 0.27.

About Spectrum Brands

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.