NYSE$SPB

Spectrum Brands Holdings Inc. · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Reported a 4.5% increase in net sales and net income of $12.8 million, despite increased brand investments.

Spectrum Brands Holdings reported a 4.5% increase in net sales for the fourth quarter of fiscal year 2024, with organic net sales up by 4.8%. Net income for the quarter was $12.8 million. The company exceeded annual operating plans and all businesses returned to growth in the second half of the year. The company expects low single-digit net sales growth and mid to high single-digit adjusted EBITDA growth for fiscal 2025.

  • Net sales increased 4.5% with organic net sales increase of 4.8%.
  • Net income was $12.8 Million; Adjusted EBITDA was $68.9 Million, net of incremental brand investments of $25.9 Million.
  • The company returned $482.7 million to shareholders through share repurchases in fiscal 2024.
  • Spectrum Brands expects low single-digit net sales growth and mid to high single-digits adjusted EBITDA growth for fiscal 2025.

Headline financials

Total Revenue

$774M

Previous: $741M+4.4%
EPS (adj)

$0.97

Previous: $1.36-28.7%
Adjusted EBITDA

$68.9M

No prior period
Adjusted EBITDA Margin

8.9%

No prior period
Gross Profit Margin

37.2%

No prior period
Net Income from Continuing Operations Margin

1.7%

No prior period
Capital Expenditures

-$13M

Previous: -$14.7M+11.6%
Net Income

$12.8M

Previous: $16.4M-22.0%
Operating Income

$21.9M

Previous: $16.2M+35.2%
Gross Profit

$288M

Previous: $244M+17.8%
Stock-Based Comp

$4.6M

Previous: $4.7M-2.1%

Revenue & EPS history

Spectrum Brands · Revenue · Quarterly

$774M

Q4 2024+4.4%vs Q4 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Spectrum Brands · $741M total across 3 segments · Q4 2023

  • Home & Personal Care
    $323M
  • Global Pet Care
    $292M
  • Home & Garden
    $125M

Forward guidance

Spectrum Brands expects low single-digit growth in reported net sales and mid to high single-digits adjusted EBITDA growth for fiscal 2025. Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA. The Company continues to target a long-term net leverage ratio of 2.0 - 2.5 times.

Tailwinds

  • Expects low single-digit growth in reported net sales in fiscal 2025.
  • Fiscal 2025 adjusted EBITDA is expected to increase by mid to high single-digits.
  • Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA.
  • Targeting a long-term net leverage ratio of 2.0 - 2.5 times.
  • Growth in net sales and adjusted EBITDA for all segments

Headwinds

  • Challenging macro-economic environment
  • Overall economic conditions impacting consumer demand.
  • Increased marketing and advertising expenses.
  • Increased investment in new product development.
  • Fluctuations in foreign currency exchange rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.8%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.1%

Avg return

30 days after

63%

40 / 64 earnings

Positive

+18.1%

Q4 2019

Best reaction

-26.0%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.8%-5.3%-4.2%
Q1 2026+10.2%+8.9%+11.8%
Q4 2025+10.0%+2.0%+15.2%
Q2 2025+3.8%+8.4%-9.7%
Q1 2025-7.7%-7.7%-9.2%
Q4 2024-3.9%-5.3%-3.6%
Q3 2024+7.4%+9.1%+12.6%
Q2 2024+12.2%+11.8%+6.9%
Q1 2024+7.4%+6.2%+4.4%
Q4 2023-14.0%-14.6%+3.3%
Q3 2023+4.7%+2.7%+8.8%
Q2 2023+2.7%+0.7%+3.4%
Q1 2023+1.2%+2.7%-7.9%
Q4 2022-2.7%+0.3%+16.7%
Q3 2022+1.2%-3.0%-12.9%
Q2 2022+7.2%+4.0%+4.6%
Q1 2022-0.8%+3.3%-0.4%
Q4 2021+11.4%+12.4%+3.8%
Q3 2021-1.9%-1.9%-5.3%
Q2 2021+3.7%-1.6%-5.8%
Q1 2021+3.2%+1.7%+0.3%
Q4 2020+2.3%+2.7%+9.9%
Q3 2020+8.6%+6.7%+13.0%
Q2 2020-2.4%-0.7%+10.3%
Q1 2020-0.6%-4.3%-12.7%
Q4 2019+18.1%+21.3%+20.3%
Q3 2019+9.0%+6.4%+19.6%
Q2 2019+4.8%-0.0%-7.4%
Q1 2019-18.4%-14.4%-3.3%
Q4 2018-17.0%-13.4%-26.8%
Q3 2018+13.7%+13.7%+18.4%
Q2 2018-26.0%-21.9%-15.1%
Q1 2018-3.9%-7.4%-9.8%
Q4 2017+12.8%+16.7%+15.8%
Q3 2017-3.5%-3.6%-9.3%
Q2 2017-9.8%-8.9%-2.7%
Q1 2017+6.7%+4.5%+14.0%
Q4 2016-1.0%+3.8%+1.3%
Q3 2016+7.0%+7.3%+15.4%
Q2 2016+2.0%
Q1 2016+0.9%
Q4 2015+3.6%
Q3 2015-2.9%
Q2 2015+1.0%
Q1 2015+3.8%
Q4 2014-3.1%
Q3 2014+0.2%
Q2 2014-0.6%
Q1 2014+5.1%
Q4 2013+4.0%
Q3 2013+3.7%
Q2 2013-1.6%
Q1 2013+0.1%
Q4 2011-3.4%
Q4 2012-10.8%
Q3 2012+0.0%
Q2 2012+1.0%
Q1 2011+0.6%
Q1 2012+2.0%
Q2 2011+0.7%
Q4 2010+0.3%
Q3 2011+0.3%
Q3 2010+1.6%
Q2 2010-4.2%

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