Household products company Spectrum Brands (NYSE:SPB) will be reporting results tomorrow morning. Here's what you need to know.
Spectrum Brands beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $718.5 million, down 1.5% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings and organic revenue growth estimates.
Is Spectrum Brands a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Spectrum Brands's revenue to grow 2.1% year on year to $750.7 million, a reversal from the 10.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Spectrum Brands has missed Wall Street's revenue estimates five times over the last two years.
Looking at Spectrum Brands's peers in the household products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Clorox's revenues decreased 5.7% year on year, missing analysts' expectations by 2.4%, and Colgate-Palmolive reported revenues up 4.9%, topping estimates by 1.1%. Clorox traded up 7.5% following the results while Colgate-Palmolive was also up 4.5%.
Read our full analysis of Clorox's results here and Colgate-Palmolive's results here.
There has been positive sentiment among investors in the household products segment, with share prices up 3.4% on average over the last month. Spectrum Brands is up 1.5% during the same time and is heading into earnings with an average analyst price target of $103 (compared to the current share price of $82.74).
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