MW Spectrum Brands' stock slides as profit lags estimates
By Ciara Linnane
'Challenging economic and geopolitical conditions' are impacting consumer demand, says CEO
Spectrum Brands Holdings Inc.'s stock slid 4% early Friday, after the parent to consumer, pet and home-product brands posted fiscal fourth-quarter profit that fell short of estimates.
Middleton, Wis.-based Spectrum $(SPB.AU)$ had net income of $28.6 million, or $1.01 a share, for the quarter, up from $16.8 million, or 47 cents a share, in the year-earlier period. Adjusted for one-time items, EPs came to 97 cents, below the $1.04 FactSet consensus.
Sales rose to $773.7 million from $740.7 million a year ago, ahead of the $748.0 million FactSet consensus.
"We exceeded our annual operating plans on virtually every metric and all of our businesses returned to growth in the second half of the year, in spite of the challenging economic and geopolitical conditions that are impacting consumer demand," Chief Executive David Maura said in prepared remarks.
The company is planning to invest in long-term growth in fiscal 2025 and expand core and adjacent categories, he added.
Sales were boosted by favorable weather that extended the season and improved retailer inventory levels in home & garden, as well as growth globally in the home appliance and personal care categories.
The company ended the quarter with cash of $369 million and total liquidity of $860 million.
The company is now expecting fiscal 2025 sales to grow by low-single-digits, while FactSet is expecting a 1% gain.
The stock has gained 18% in the year to date, while the S&P 500 SPX has gained 25%.
-Ciara Linnane
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(END) Dow Jones Newswires
November 15, 2024 07:49 ET (12:49 GMT)
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