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Spectrum Brands Holdings Declares Dividend of $0.38 per Share

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Price movement

Spectrum Brands Holdings (SPB) has a market cap of $8.3 billion. It rose 0.64% to close at $129.59 per share on November 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -3.9%, -4.0%, and 28.6%, respectively, on the same day.

SPB is trading 3.1% below its 20-day moving average, 2.7% below its 50-day moving average, and 9.6% above its 200-day moving average.

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Related ETF and peers

The iShares Morningstar Mid-Cap Growth Index ETF (JKH) invests 0.22% of its holdings in Spectrum Brands. The ETF tracks a market cap–weighted index of mid-cap companies selected by Morningstar based on their growth characteristics. The YTD price movement of JKH was 3.7% on November 14.

The market cap of Spectrum Brands’s competitors are as follows:

  • Procter & Gamble (PG) — $230.1 billion
  • Masco Corporation (MAS) — $10.2 billion
  • Edgewell Personal Care (EPC) — $4.8 billion

SPB declared dividend

Spectrum Brands Holdings (SPB) has declared a quarterly dividend of $0.38 per share on its common stock. The dividend will be paid on December 15, 2016, to shareholders of record at the close of business on November 30, 2016.

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Performance of Spectrum Brands in fiscal 3Q16

Spectrum Brands (SPB) reported fiscal 3Q16 net sales of $1.4 million, a rise of 9.1% from $1.3 million in fiscal 3Q15. Sales from the Global Batteries & Appliances and Global Pet Supplies segments fell 1.1% and 0.6%, respectively.

Sales from the Hardware & Home Improvement, Home & Garden, and Global Auto Care segments rose 4.8%, 4.8%, and 148.1%, respectively, between fiscal 3Q15 and fiscal 3Q16.

Net income, EPS, and cash

Spectrum Brands’s net income and EPS (earnings per share) rose to $101.9 million and $1.71, respectively, in fiscal 3Q16 compared to $44.9 million and $0.79, respectively, in fiscal 3Q15.

The company reported adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] of $279.2 million in fiscal 3Q16, a rise of 18.2% over fiscal 3Q15. SPB’s cash and cash equivalents fell 52.8%, and its inventory rose 7.9% between fiscal 4Q15 and fiscal 3Q16.

Projections

Spectrum Brands (SPB) made the following projections for fiscal 2016:

  • The company expects a net sales increase in the high single-digit range. This includes the positive impacts of the acquisitions of the European pet food business on December 31, 2014; Salix Animal Health on January 16, 2015; and Armored Auto Group on May 21, 2015. This also includes the negative impact of foreign exchange of 2.8%–3.0% based on current spot rates.
  • SPB anticipates free cash flows of $505 million–$515 million.
  • SPB projects capital expenditure of $100 million–$110 million.

In the next part, we’ll take a look at ConAgra Brands (CAG).

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