Hamilton Beach Brands (NYSE:HBB) Releases Quarterly Earnings Results, Beats Expectations By $2.33 EPS

Hamilton Beach Brands (NYSE:HBB) issued its quarterly earnings data on Wednesday. The company reported $2.49 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $2.33, FiscalAI reports. Hamilton Beach Brands had a net margin of 4.73% and a return on equity of 16.21%. The company had revenue of $142.63 million during the quarter, compared to the consensus estimate of $121.37 million.

Here are the key takeaways from Hamilton Beach Brands’ conference call:

• Second-quarter revenue rose 11.6% to $142.6 million as U.S. consumer volumes recovered from last year’s retailer purchasing pause. Operating performance improved even before the benefit of the tariff refund.
• Gross margin expanded to 54.3% and net income reached $33.7 million, or $2.49 per diluted share, helped by a $36.5 million IEEPA tariff refund. However, underlying gross margin was 26.1%, making the reported earnings benefit largely one-time.
• Excluding the tariff refund, the company expects 2026 revenue growth to approach the mid-single-digit range, while operating profit is now projected to decline by a high-single-digit percentage. Higher commodity and freight costs, $6 million of additional advertising, and roughly $6 million of ERP-related accelerated depreciation are pressuring profitability.
• Management highlighted growth initiatives across premium products, commercial equipment, digital marketing, and Hamilton Beach Health. Health sales are expected to increase 50% this year, with four consecutive quarters of profitable growth and a new pill-management platform pilot planned for the third quarter.
• Cash flow from operations reached $61.5 million in the first half, inventory fell 28.2% year over year, and the company ended the quarter with $51.5 million of net cash. Management plans to reinvest part of the tariff proceeds in brand-building and marketing while continuing dividends and selective share repurchases.

Hamilton Beach Brands Trading Up 1.8%

Shares of NYSE HBB traded up $0.43 during mid-day trading on Wednesday, reaching $24.14. 22,889 shares of the company’s stock were exchanged, compared to its average volume of 42,299. Hamilton Beach Brands has a 52-week low of $12.72 and a 52-week high of $25.05. The firm has a market capitalization of $327.10 million, a price-to-earnings ratio of 11.55 and a beta of 0.23. The company’s 50-day moving average is $21.40 and its 200-day moving average is $19.85. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.61 and a current ratio of 2.98.

Hamilton Beach Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Monday, June 1st were given a $0.125 dividend. The ex-dividend date was Monday, June 1st. This is a positive change from Hamilton Beach Brands’s previous quarterly dividend of $0.12. This represents a $0.50 annualized dividend and a yield of 2.1%. Hamilton Beach Brands’s dividend payout ratio (DPR) is currently 23.92%.

Hedge Funds Weigh In On Hamilton Beach Brands

Several hedge funds have recently added to or reduced their stakes in the stock. Ameriprise Financial Inc. increased its stake in Hamilton Beach Brands by 4.6% in the 3rd quarter. Ameriprise Financial Inc. now owns 467,479 shares of the company’s stock valued at $6,718,000 after buying an additional 20,586 shares during the period. State Street Corp boosted its stake in shares of Hamilton Beach Brands by 1.2% during the 4th quarter. State Street Corp now owns 130,005 shares of the company’s stock worth $2,139,000 after purchasing an additional 1,557 shares during the last quarter. Bridgeway Capital Management LLC raised its holdings in Hamilton Beach Brands by 5.9% in the 3rd quarter. Bridgeway Capital Management LLC now owns 118,464 shares of the company’s stock valued at $1,702,000 after acquiring an additional 6,564 shares during the last quarter. Empowered Funds LLC boosted its position in shares of Hamilton Beach Brands by 5.9% in the fourth quarter. Empowered Funds LLC now owns 61,834 shares of the company’s stock worth $1,017,000 after acquiring an additional 3,470 shares during the last quarter. Finally, Citadel Advisors LLC purchased a new position in Hamilton Beach Brands during the third quarter worth approximately $606,000. 50.55% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered Hamilton Beach Brands from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, May 8th. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Hamilton Beach Brands Company Profile

Hamilton Beach Brands Holding Company is a designer, marketer and distributor of branded small kitchen and household appliances. The company’s product portfolio spans a range of countertop and electric appliances, including blenders, mixers, toasters, coffeemakers, slow cookers, air fryers, and specialty beverage machines. Through the Hamilton Beach and Proctor-Silex brands, the company serves both everyday consumers and commercial foodservice operators.

Established in 1910, Hamilton Beach has introduced a number of innovations in small-appliance technology, from early electric drink mixers to modern immersion blenders and multi-function cookers.