Spectrum Brands Holdings Inc. (NYSE: SPB) appears in good shape, thanks to its robust strategic efforts. The company's Global Productivity Improvement Plan, which aims at improving the operating efficiency, is encouraging too. Solid gains from pricing, cost improvements and favorable mix have been aiding its margins for a while now. Its e-commerce unit also bodes well.
Analysts seem optimistic about the company's earnings potential. The Zacks Consensus Estimate for fiscal 2024 and fiscal 2025 earnings per share is pegged at $4.78 and $6.21, respectively. While the figure for fiscal 2024 indicates a sharp increase year over year, the metric for fiscal 2025 implies a rise of about 30%.
Let's Delve Deep
Spectrum Brands is on track with its growth initiatives. In this regard, the company is streamlining its organizational structure and re-energizing its employee base. It is committed to improving operational efficiencies through limiting risk. Management is protecting and deleveraging its balance sheet while solidifying liquidity. As part of its strategic transformation, the company completed the sale of its HHI business to ASSA ABLOY for $4.3 billion in cash on Jun 20, subject to customary purchase price adjustments. With the sale of the HHI business, SPB has been strongly focusing on its core businesses and delivering sustainable growth.
The company is experiencing sturdy momentum in its e-commerce business, which continued during the fiscal third quarter, with more than 20% growth year over year. E-commerce sales accounted for more than 21% of the total sales in the quarter. We note that ...
