Spectrum Brands Holdings (SPB) rose 8.9% to close at $132.67 per share during the fourth week of January 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 8.9%, 8.9%, and 8.5%, respectively, on January 27, 2017.
SPB is trading 8.3% above its 20-day moving average, 8.7% above its 50-day moving average, and 7.6% above its 200-day moving average.
Related ETF and peers
The iShares Morningstar Mid-Cap Growth Index ETF (JKH) invests 0.20% of its holdings in Spectrum Brands. The YTD price movement of JKH was 4.1% on January 27.
The market caps of Spectrum Brands’ competitors are as follows:
- Procter & Gamble (PG) — $221.7 billion
- Masco (MAS) — $10.9 billion
- Edgewell Personal Care Company (EPC) — $4.5 billion
SPB declares dividend
Spectrum Brands has declared a quarterly dividend of $0.42 per share on its common stock. The dividend will be paid on March 7, 2017, to shareholders of record at the close of business on February 14, 2017.
Latest news on SPB
Spectrum Brands has announced a new share repurchase program of $500 million for three years, effective immediately.
Performance in fiscal 1Q17
Spectrum Brands reported fiscal 1Q17 net sales of $1.21 billion, a fall of 0.6% compared to its net sales of $1.22 billion in fiscal 1Q16 due to the negative impact of foreign exchange. Sales of its Global Batteries & Appliances, Global Auto Care, and Global Pet Supplies segments fell 0.3%, 5.7%, and 4.5%, respectively, in fiscal 1Q17.
Sales of its Hardware & Home Improvement and Home & Garden segments rose 2.2% and 4.4% in fiscal 1Q17 compared to fiscal 1Q16. The company’s gross profit margin and operating margin expanded 90 basis points and 80 basis points, respectively, in fiscal 1Q17 compared to 1Q16. The company’s gross margin expanded due to a favorable mix and higher productivity, which were partially offset by unfavorable foreign exchange.
Spectrum’s net income and EPS (earnings per share) fell to $65.2 million and $1.10, respectively, in fiscal 1Q17, compared to $73.6 million and $1.24, respectively, in fiscal 1Q16. It reported adjusted EPS of $1.21 in fiscal 1Q17, a rise of 19.8% compared to fiscal 1Q16.
Spectrum Brands’ cash and cash equivalents fell 47.9%, while its inventories rose 5.3% between fiscal 1Q17 and fiscal 4Q16.
Spectrum Brands made the following projections for fiscal 2017:
- free cash flow of $575 million–$590 million
- capital expenditure of $110 million–$120 million
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