UPDATE: Spectrum Brands (SPB) Misses Q2 EPS by 45c, Misses on Revenues
(Update corrects headline)
Spectrum Brands (NYSE: SPB) reported Q2 EPS of $0.56, $0.45 worse than the analyst estimate of $1.01. Revenue for the quarter came in at $766.1 million versus the consensus estimate of $798.83 million.
Fiscal 2018 Second Quarter Highlights from Continuing Operations:
- Net sales of $766.1 million in the second quarter of fiscal 2018 increased 1.3 percent compared to $756.5 million last year. Excluding the impact of $12.3 million of favorable foreign exchange and acquisition sales of $25.2 million, organic net sales decreased 3.7 percent versus the prior year.
- Net income from continuing operations of $0.8 million and diluted EPS from continuing operations of $0.02 in the second quarter of fiscal 2018 decreased compared to net income from continuing operations of $39.9 million and diluted EPS from continuing operations of $0.68 in fiscal 2017 primarily due to higher production costs and higher operating expenses from incremental transaction costs and restructuring expenses.
- Adjusted diluted EPS from continuing operations of $0.56 in the second quarter of fiscal 2018 decreased 34.9 percent versus $0.86 last year predominantly due to lower gross profit and higher interest expense.
- Operating income of $43.2 million in the second quarter of fiscal 2018 fell 58.9 percent versus $105.1 million last year as a result of incremental restructuring costs and higher operating expenses.
- Operating income margin of 5.6 percent in the second quarter of fiscal 2018 decreased 830 basis points versus 13.9 percent last year.
- Adjusted EBITDA of $115.6 million in the second quarter of fiscal 2018 declined 27.8 percent compared to $160.2 million in fiscal 2017. Excluding the impact of unfavorable foreign exchange of $0.3 million and acquisition EBITDA of $8.5 million, organic adjusted EBITDA of $106.8 million decreased 33.3 percent versus the prior year.
- Adjusted EBITDA margin of 15.1 percent in the second quarter of fiscal 2018 decreased 610 basis points compared to 21.2 percent in fiscal 2017 primarily due to unfavorable product mix, operating inefficiencies, input cost inflation and higher distribution costs.
For earnings history and earnings-related data on Spectrum Brands (SPB) click here.