Spectrum Brands Posts Mixed Q2 Earnings As Gross Profit Decrease 4.5% To $263.5M
Portfolio Pulse from Shivani Kumaresan
Spectrum Brands Holdings Inc (NYSE:SPB) reported a Q2 2023 sales decline of 10.1% year-on-year to $735.5 million, missing the analyst consensus estimate of $780.97 million. Gross profit decreased 4.5% Y/Y to $263.5 million, and the operating loss for the quarter was $124.7 million. However, adjusted EBITDA increased 23%, and adjusted EPS of $0.75 beat the analyst consensus estimate of $0.57. The company reiterated FY23 sales outlook of mid-single digit decline.
August 11, 2023 | 1:26 pm
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Spectrum Brands reported lower than expected Q2 2023 sales and a decrease in gross profit. However, adjusted EBITDA and EPS beat estimates. The company expects a mid-single digit sales decline for FY23.
The company's lower than expected sales and decrease in gross profit could negatively impact the stock price. However, the beat on adjusted EBITDA and EPS could provide some support. The outlook for a sales decline in FY23 could further pressure the stock.
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IMPORTANCE 80
RELEVANCE 100