Spectrum Brands Holdings Inc.
) is scheduled to report its second-quarter fiscal 2014 results
before the markets open on May 7. Last quarter, this global
consumer products company posted a positive earnings surprise of
approximately 6.86%. Let's see how things are shaping up for this
Growth Factors in the Past Quarter
Spectrum Brands' strong first-quarter fiscal 2014 performance
was mainly driven by improved top lines that stemmed from the
accretive Hardware & Home Improvement (HHI) business.
Earnings also benefited from strong margins growth during the
On a segmental basis, Home & Garden and HHI segments
contributed to sales growth, while sales at the Global Batteries
& Appliances and Global Pet Supplies segment were an offset.
The company remains optimistic of its fiscal-2014 performance,
projecting sales growth at the rate of gross domestic product
(GDP) compared with fiscal 2013 net sales.
Our proven model does not conclusively project Spectrum Brands
as likely to beat earnings this quarter. A stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, this is not the case here due to the following
Negative Zacks ESP:
ESP (Expected Surprise Prediction) for Spectrum Brands is -2.70%.
This is because the Most Accurate estimate stands at 72 cents,
while the Zacks Consensus Estimate is pegged at 74 cents.
Zacks #3 Rank (Hold):
Spectrum Brands' Zacks Rank #3 increases the predictive power of
ESP. However, we also need to have a positive ESP to be confident
of an earnings surprise call. We caution against stocks with a
Zacks Rank #4 and #5 (Sell-rated stocks) going into earnings
announcement, especially when the company is undergoing negative
Stocks That Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
Foot Locker Inc
) Earnings ESP stands at +1.91% and it carries a Zacks Rank #2
Vitamin Shoppe Inc.
) has an Earnings ESP of +1.47% and a Zacks Rank #3.
CST Brands Inc.
) with an Earnings ESP of +14.29% carries a Zacks Rank #3.
CST BRANDS INC (CST): Free Stock Analysis
FOOT LOCKER INC (FL): Free Stock Analysis
SPECTRUM BRANDS (SPB): Free Stock Analysis
VITAMIN SHOPPE (VSI): Free Stock Analysis
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