Spectrum Brands (NYSE: SPB) reported Q1 EPS of $1.21, $0.05 better than the analyst estimate of $1.16. Revenue for the quarter came in at $1.21 billion versus the consensus estimate of $1.23 billion.

Fiscal 2017 Outlook

Spectrum Brands expects fiscal 2017 reported net sales to grow above category rates, along with an anticipated negative impact from foreign exchange of approximately 100 to 150 basis points.

Fiscal 2017 free cash flow is projected to be approximately $575-$590 million compared to $535 million in fiscal 2016. Capital expenditures are expected to be in the range of $110 million to $120 million, including rollover spending from fiscal 2016. These incremental investments will support footprint optimization, vertical integration improvements, technology and innovation and are expected to enhance the Company’s margin structure and organic net sales growth rate.

"We delivered solid first quarter adjusted EBITDA and adjusted earnings per share growth with strong margin expansion despite a continuation of foreign currency headwinds,” said Andreas Rouvé, Chief Executive Officer of Spectrum Brands Holdings. “These results maintain the momentum from our record fiscal 2016 and provide a good start to achieving an 8th consecutive year of record financial performance in fiscal 2017.

“Hardware and Home Improvement delivered record results, the performance of global batteries and small appliances was excellent and, regionally, Europe, Latin America, Canada and Asia-Pacific reported solid organic adjusted EBITDA growth,” Mr. Rouvé said.

“As expected, our sales performance was challenged by a difficult comparison to our large quarterly organic revenue increase last year in the first quarter of 6.3%,” he said. “Our flat 2017 first quarter reported sales and organic growth of 1% were impacted by planned exits of unprofitable businesses of approximately $8 million and two fewer shipping days of approximately $20-$25 million which combined had an approximately 2.5% adverse effect on our top line. The shipping days impact will largely benefit the fourth quarter.

“We are seeing the operating leverage benefits of our global infrastructure and shared services platform, as well as our continuous improvement of processes and strong cost reduction results in our plants and supply chains,” Mr. Rouvé said. “The positive impact of the exit of unprofitable businesses and the launch of innovative products is helping to improve profitability, margins and free cash flow.

“We continue to expect top-line growth above category rates, strong bottom-line growth and a free cash flow increase of up to 10 percent in fiscal 2017, driven by the continuous launch of innovation and further leveraging of our global platform to expand distribution of our products,” Mr. Rouvé said.

For earnings history and earnings-related data on Spectrum Brands (SPB) click here.