Spectrum Brands (NYSE:SPB) Shares Gap Down After Earnings Miss

Spectrum Brands Holdings, Inc. (NYSE:SPB)’s stock price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $93.86, but opened at $90.95. Spectrum Brands shares last traded at $89.10, with a volume of 35,035 shares traded.

The company reported $0.97 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.16). The firm had revenue of $773.70 million for the quarter, compared to the consensus estimate of $747.80 million. Spectrum Brands had a return on equity of 6.84% and a net margin of 3.86%. Spectrum Brands’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same quarter last year, the company posted $1.36 EPS.

Spectrum Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 17th. Stockholders of record on Tuesday, November 26th will be paid a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 2.13%. This is an increase from Spectrum Brands’s previous quarterly dividend of $0.42. The ex-dividend date is Tuesday, November 26th. Spectrum Brands’s dividend payout ratio is currently 46.08%.

Wall Street Analyst Weigh In

SPB has been the subject of a number of research analyst reports. UBS Group lifted their price target on Spectrum Brands from $111.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, August 9th. Wells Fargo & Company lifted their price target on Spectrum Brands from $87.00 to $90.00 and gave the stock an “equal weight” rating in a report on Friday, August 9th. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on Spectrum Brands from $91.00 to $94.00 and gave the stock a “hold” rating in a report on Friday, August 9th. Five research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $101.88.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SPB. Waldron Private Wealth LLC acquired a new position in shares of Spectrum Brands during the third quarter worth $27,000. Brooklyn Investment Group acquired a new position in shares of Spectrum Brands during the third quarter worth $31,000. Versant Capital Management Inc increased its holdings in shares of Spectrum Brands by 1,923.8% during the second quarter. Versant Capital Management Inc now owns 425 shares of the company’s stock worth $37,000 after buying an additional 404 shares in the last quarter. Mitsubishi UFJ Trust & Banking Corp acquired a new position in shares of Spectrum Brands during the first quarter worth $42,000. Finally, International Assets Investment Management LLC increased its holdings in shares of Spectrum Brands by 9,420.0% during the third quarter. International Assets Investment Management LLC now owns 476 shares of the company’s stock worth $45,000 after buying an additional 471 shares in the last quarter.

Spectrum Brands Stock Down 6.0 %

The company has a debt-to-equity ratio of 0.26, a current ratio of 2.28 and a quick ratio of 1.61. The company has a market capitalization of $2.47 billion, a price-to-earnings ratio of 21.62, a P/E/G ratio of 0.26 and a beta of 1.23. The firm’s fifty day moving average price is $91.49 and its 200-day moving average price is $89.42.

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.