Spectrum Brands (NYSE:SPB) Shares Gap Up on Strong Earnings

Spectrum Brands Holdings Inc. (NYSE:SPB) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $68.44, but opened at $73.01. Spectrum Brands shares last traded at $73.4950, with a volume of 146,798 shares.

The company reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.63. The business had revenue of $677.00 million during the quarter, compared to analyst estimates of $667.59 million. Spectrum Brands had a return on equity of 7.29% and a net margin of 3.56%.During the same period in the previous year, the company earned $1.02 EPS. The firm’s revenue was down 3.3% on a year-over-year basis.

Spectrum Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 17th will be given a $0.47 dividend. This represents a $1.88 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, February 17th. Spectrum Brands’s payout ratio is currently 47.47%.

Wall Street Analysts Forecast Growth

SPB has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Spectrum Brands from a “sell” rating to a “hold” rating in a report on Tuesday, November 18th. Weiss Ratings reiterated a “hold (c)” rating on shares of Spectrum Brands in a research note on Monday, December 29th. Royal Bank Of Canada reissued an “outperform” rating and issued a $75.00 price objective on shares of Spectrum Brands in a research note on Tuesday. Wells Fargo & Company boosted their target price on Spectrum Brands from $55.00 to $62.00 and gave the stock an “equal weight” rating in a report on Friday, November 14th. Finally, Canaccord Genuity Group increased their price target on Spectrum Brands from $75.00 to $84.00 and gave the company a “buy” rating in a report on Monday, November 17th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Spectrum Brands currently has an average rating of “Moderate Buy” and an average target price of $77.00.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Pzena Investment Management LLC boosted its position in shares of Spectrum Brands by 66.8% in the third quarter. Pzena Investment Management LLC now owns 2,459,485 shares of the company’s stock valued at $129,197,000 after acquiring an additional 985,034 shares during the period. Callodine Capital Management LP raised its stake in Spectrum Brands by 85.5% during the 2nd quarter. Callodine Capital Management LP now owns 1,354,057 shares of the company’s stock valued at $71,765,000 after purchasing an additional 624,057 shares during the last quarter. American Century Companies Inc. boosted its holdings in Spectrum Brands by 35.9% in the 2nd quarter. American Century Companies Inc. now owns 1,792,765 shares of the company’s stock valued at $95,017,000 after purchasing an additional 473,345 shares during the period. Norges Bank acquired a new stake in Spectrum Brands in the 2nd quarter worth $16,844,000. Finally, Balyasny Asset Management L.P. bought a new position in shares of Spectrum Brands during the 2nd quarter worth about $15,409,000.

Spectrum Brands Price Performance

The company has a quick ratio of 1.41, a current ratio of 2.26 and a debt-to-equity ratio of 0.29. The stock’s 50-day moving average price is $61.52 and its 200 day moving average price is $57.22. The firm has a market cap of $1.70 billion, a price-to-earnings ratio of 18.49 and a beta of 0.68.

About Spectrum Brands

Spectrum Brands Holdings, Inc is a global consumer products company that develops and markets a diverse portfolio of branded household and personal care products. Organized into four principal business segments—Hardware & Home Improvement, Home & Garden, Pet, and Appliances & Personal Care—the company offers a broad range of items including security and plumbing solutions, small electric appliances, grooming tools, and pet care accessories. Its hardware division features well-known brands such as Kwikset, Baldwin and Pfister, while the home appliance segment is anchored by names like Russell Hobbs and Remington.