What To Expect From Spectrum Brands's (SPB) Q1 Earnings

Household products company Spectrum Brands (NYSE:SPB) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Spectrum Brands beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $692.2 million, down 3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Spectrum Brands a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Spectrum Brands's revenue to decline 2.8% year on year to $708.6 million, improving from the 9.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Spectrum Brands has missed Wall Street's revenue estimates five times over the last two years.

Looking at Spectrum Brands's peers in the household products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Clorox's revenues decreased 5.3% year on year, missing analysts' expectations by 3%, and Kimberly-Clark reported flat revenue, topping estimates by 1.2%. Clorox traded down 5.6% following the results while Kimberly-Clark was up 6.9%.

Read our full analysis of Clorox's results here and Kimberly-Clark's results here.

Investors in the household products segment have had steady hands going into earnings, with share prices flat over the last month. Spectrum Brands is up 1.5% during the same time and is heading into earnings with an average analyst price target of $92.9 (compared to the current share price of $85.3).

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