Yahoo Finance Factors Likely to Affect Spectrum Brands' (SPB) Q2 Earnings
Spectrum Brands Holdings, Inc. SPB is slated to report second-quarter fiscal 2023 results on May 12, before the opening bell.
The Zacks Consensus Estimate for the fiscal second-quarter bottom line is pegged at a loss of 5 cents per share, which indicates a decrease of 112.2% from the year-ago quarter’s reported figure. The consensus mark has moved down from earnings of 3 cents in the past 30 days. The consensus mark for revenues is pegged at $772 million, indicating decline of 4.4% from the figure reported in the year-ago quarter.
We expect fiscal second-quarter net revenues to decline 3.4% year over year to $780.2 million and the bottom line to plunge 163.2% to 26 cents a share.
In the last reported quarter, the company delivered a negative earnings surprise of 128.6%. Also, it delivered a negative earnings surprise of 61%, on average, in the trailing four quarters.
Spectrum Brands Holdings Inc. Price and EPS Surprise
Spectrum Brands Holdings Inc. price-eps-surprise | Spectrum Brands Holdings Inc. Quote
Factors to Note
Spectrum Brands has been reeling under continued high retail inventory, along with a difficult economic environment and dismal demand. The company has also been witnessing lower replenishment orders, stemming from higher retail inventory and slower holiday POS.
Lower distribution costs, the last year’s cost-reduction initiatives and reduced project expenses are likely to have dented the company’s fiscal second-quarter performance. Also, adverse currency rates are expected to have been concerning.
However, Spectrum Brands is on track with streamlining its organizational structure and re-energizing its employee base. The company has been focusing on transforming itself into a pure-play global Pet and Home & Garden businesses. SPB has also been on track with its Global Productivity Improvement Plan, which is likely to have provided some cushion to the fiscal second quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Spectrum Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Spectrum Brands has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -280.95%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Wynn Resorts WYNN has an Earnings ESP of +105.69% and a Zacks Rank #2. BYD is likely to register bottom and top-line growth when it reports first-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.3 billion, suggesting 31.6% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Wynn Resorts’ first-quarter earnings is pegged at a loss of 18 cents, suggesting 85.1% growth from a loss of $1.21 reported in the year-ago quarter. The consensus mark has narrowed down from a loss of 27 cents in the past 30 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming BYD currently has an Earnings ESP of +0.30% and a Zacks Rank #2. BYD is likely to register bottom and top-line growth when it reports first-quarter fiscal 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $878.7 million, suggesting 2.1% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Boyd Gaming’s fiscal first-quarter earnings is pegged at $1.47, suggesting 5% growth from the $1.40 reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days.
Choice Hotels International CHH has an Earnings ESP of +11.89% and a Zacks Rank #3. CHH is likely to register bottom and top-line growth when it reports first-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $316.3 million, suggesting 22.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Choice Hotels’ first-quarter earnings is pegged at $1.08, suggesting 4.9% growth from the $1.03 reported in the year-ago quarter. The consensus mark has moved 2.7% in the past 30 days.
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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Spectrum Brands Holdings Inc. (SPB) : Free Stock Analysis Report
