Spectrum Brands (NYSE: SPB) reported Q1 EPS of $0.38, $0.12 better than the analyst estimate of $0.26. Revenue for the quarter came in at $646.5 million versus the consensus estimate of $635.04 million.

Fiscal 2018 First Quarter Highlights from Continuing Operations:

• Net sales of $646.5 million in the first quarter of fiscal 2018 increased 7.3 percent compared to $602.3 million last year. Excluding the impact of $7.5 million of favorable foreign exchange and acquisition sales of $24.8 million, organic net sales improved 2.0 percent versus the prior year.
• Net income from continuing operations of $120.1 million and diluted EPS from continuing operations of $2.07 in the first quarter of fiscal 2018 increased compared to net income of $12.8 million and diluted EPS of $0.21 in fiscal 2017 primarily due to lower interest expense and a net income tax benefit in the first quarter of fiscal 2018 attributable to recently enacted U.S. tax reform.
• Adjusted diluted EPS of $0.38 in the first quarter of fiscal 2018 increased 8.6 percent versus $0.35 last year predominantly due to a change in the normalized effective tax rate to a blended annual rate of 24.5 percent from 35.0 percent due to changes in the U.S. corporate tax rate.
• Operating income of $34.0 million in the first quarter of fiscal 2018 fell 44.7 percent versus $61.5 million last year as a result of incremental restructuring costs and higher operating expenses.
• Operating income margin of 5.3 percent in the first quarter of fiscal 2018 decreased 490 basis points versus 10.2 percent last year.
• Adjusted EBITDA of $105.7 million in the first quarter of fiscal 2018 increased 0.5% compared to $105.2 million in fiscal 2017. Excluding the impact of unfavorable foreign exchange of $1.6 million and acquisition EBITDA of $8.7 million, organic adjusted EBITDA of $98.6 million decreased 6.3 percent versus the prior year.
• Adjusted EBITDA margin of 16.3 percent in the first quarter of fiscal 2018 decreased 120 basis points compared to 17.5 percent in fiscal 2017 primarily due to unfavorable product mix, operating inefficiencies and input cost inflation.

Fiscal 2018 Outlook

• Spectrum Brands expects fiscal 2018 reported net sales from continuing operations to grow above category rates for most categories, along with an anticipated modest positive impact from foreign exchange based upon current rates.
• Fiscal 2018 adjusted free cash flow is projected to be approximately $620-$640 million compared to $587 million in fiscal 2017. Capital expenditures are expected to be between $110 million to $120 million.

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