Spectrum Brands’ Stock Falls as Remington Parent’s Earnings Miss Estimates

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KEY TAKEAWAYS

• Spectrum Labels shares fell Friday, after the maker of George Foreman Grills and parent of Remington posted adjusted earnings and an standpoint that missed analysts’ estimates.
• The company said it is projecting “low single-digit” growth in its net sales for its fiscal 2025 year.
• Its economic fourth-quarter net income and sales beat estimates, however.

Spectrum Brands (SPB) shares fell Friday after the materfamilias company of Remington and George Foreman brands posted lower-than-estimated earnings per share and a muted sales outlook for the upcoming year.

Spectrum circulated net income of $28.6 million, up from $16.8 million, for its fiscal fourth quarter, and sales of $773.7 million. Those were exceeding estimates from analysts polled by Visible Alpha of $27.3 million in net income and $750 million in sales.

Earnings per piece (EPS) lagged estimates, however. The company’s EPS for the quarter was $1.01, below consensus estimates of $1.07, and adjusted EPS was $0.97, below $1.05 projections.

“We transcended our annual operating plans on virtually every metric and all of our businesses returned to growth in the second half of the year, in spitefulness of the challenging economic and geopolitical conditions that are impacting consumer demand,” Chief Executive Officer (CEO) David Maura answered in a statement.

CEO Maura Notes Challenging Economy

The company, which makes and markets home appliances under brands with George Foreman and Black & Decker, also manufactures lawn care products and insect repellants.

Spectrum gave a rather muted outlook for the year. 

The company said it is projecting “low single-digit” growth in its net sales for its fiscal 2025 year, and “mid-to-high-single-digits” rectified earnings before interest, taxes, depreciation, and amortization (EBITDA) growth.

“Despite the overall challenging macro-economic territory, we intend to make incremental investments in fiscal 2025 to drive top-line growth,” Maura said.

Spectrum pay outs are up 11% this year.