Spectrum Brands to Release Fiscal Third-Quarter Results

Spectrum Brands Holdings is slated to announce its fiscal third-quarter results on Friday before the market opens, according to FactSet data. Here's a breakdown of what to expect:

Sales

The home-essentials company is projected to report $785.4 million in sales for the quarter, a decline from $818 million during the same period last year.

Adjusted Earnings

Spectrum Brands Holdings, based in Middleton, Wis., is anticipated to report adjusted earnings of 48 cents per share, down from 54 cents per share in the previous year.

Net Income

Net income for the company is forecasted to be $18.4 million, a decrease from $32.9 million reported in the prior-year period.

Key Points to Monitor

Next Opportunities

Following the completion of Spectrum Brands' sale of its Hardware and Home Improvement segment to Assa Abloy, a Swedish lockmaker, in June, investors should pay attention to any updates on the company's future plans. Spectrum Brands expressed a desire to transform itself into a faster-growing, higher-margin pure-play global pet care and home & garden company. CEO David Maura previously stated that the proceeds from the sale would be utilized to reduce debt, enhance operating performance, and pursue M&A opportunities within its global pet care business.

Inventory Management

An important area to focus on is Spectrum Brands' inventory and any comments made by executives about its current state. In the previous quarter, Maura mentioned that the company's inventory had reached appropriate levels to meet market demand, but further reductions would be achieved through rebalancing inventory profiles to avoid excess.

Demand Outlook

Investors will be keen to hear Spectrum Brands' outlook on consumer demand. In May, the company projected softer consumer demand in the second half of the fiscal year, especially within the kitchen appliances category. Additionally, it expects U.S. retailers to continue prioritizing inventory reduction.