What happened?
Shares of Spectrum Brands Holdings, Inc . (NYSE: SPB) , a global diversified consumer-products company with brands that include Pfister, Remington, George Foreman, Littermaid, and many others shed 17.7% of their value Thursday after reporting a surprise loss and weaker-than-anticipated first-quarter fiscal 2019 results.
So what
Managemen t report ed a surprise first-quarter adjusted loss of $0.20 per share, compared to analyst estimates calling for adjusted earnings of $0.38 per share. Revenue declined just under 5%, to $874.6 million, also missing analyst estimates calling for $911 million.
Two factors weighing on the company’s top-line results were lower first-quarter sales in hardware and home improvement (HHI) due to the absence of prior-year hurricane recovery demand and lower global personal-care revenues for its home and personal care (HPC) business.
“We achieved significant progress in January in the transformation of Spectrum Brands into a meaningfully stronger and more focused consumer products company with greater flexibility to drive long-term growth and value creation,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands, in a press release.
Image source: Getty Images.
Now what
It was certainly a weaker-than-expected result from the company, but investors have to keep in mind that the company generally has a stronger second half due to seasonality, which gives its home and garden and HHI a chance to offset early 2019 weakness with a stronger back-end performance. Investors will want to watch the company’s home and personal care business as management increases investments in innovation and marketing behind its stronger brands in hopes to improve growth.
It’s also worth noting management didn’t lower guidance after the disappointing results and reiterated its fiscal 2019 adjusted EBITDA guidance of $560 million to $580 million, even including its planned increase in advertising and product development.
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
A Surprise Q1 Loss and Weak Top-Line Results Send Spectrum Brands 17.7% Lower Thursday
What happened?
Shares of Spectrum Brands Holdings, Inc . (NYSE: SPB) , a global diversified consumer-products company with brands that include Pfister, Remington, George Foreman, Littermaid, and many others shed 17.7% of their value Thursday after reporting a surprise loss and weaker-than-anticipated first-quarter fiscal 2019 results.
So what
Managemen t report ed a surprise first-quarter adjusted loss of $0.20 per share, compared to analyst estimates calling for adjusted earnings of $0.38 per share. Revenue declined just under 5%, to $874.6 million, also missing analyst estimates calling for $911 million.
Two factors weighing on the company’s top-line results were lower first-quarter sales in hardware and home improvement (HHI) due to the absence of prior-year hurricane recovery demand and lower global personal-care revenues for its home and personal care (HPC) business.
“We achieved significant progress in January in the transformation of Spectrum Brands into a meaningfully stronger and more focused consumer products company with greater flexibility to drive long-term growth and value creation,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands, in a press release.
Image source: Getty Images.
Now what
It was certainly a weaker-than-expected result from the company, but investors have to keep in mind that the company generally has a stronger second half due to seasonality, which gives its home and garden and HHI a chance to offset early 2019 weakness with a stronger back-end performance. Investors will want to watch the company’s home and personal care business as management increases investments in innovation and marketing behind its stronger brands in hopes to improve growth.
It’s also worth noting management didn’t lower guidance after the disappointing results and reiterated its fiscal 2019 adjusted EBITDA guidance of $560 million to $580 million, even including its planned increase in advertising and product development.
10 stocks we like better than Spectrum Brands
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Spectrum Brands wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
Validea Warren Buffett Strategy Daily Upgrade Report – 2/27/2019
See the 10 stocks
*Stock Advisor returns as of January 31, 2019
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.