ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

The 5 Most Interesting Analyst Questions From Spectrum Brands’s Q1 Earnings Call

SPB Cover Image

Spectrum Brands faced a challenging first quarter as revenue and non-GAAP profit missed Wall Street expectations, with management citing ongoing tariff volatility and weakening consumer demand as the primary drivers. CEO David Maura described the environment as “unprecedented,” emphasizing that the company’s typical cost mitigation playbook could not offset the impact of recently escalated tariffs. The company responded by pausing most finished goods sourcing from China, accelerating its supply chain diversification, and launching cost-saving initiatives. Management’s remarks reflected a cautious tone, especially regarding the outlook for the U.S. appliance business.

Is now the time to buy SPB? Find out in our full research report (it’s free).

Spectrum Brands (SPB) Q1 CY2025 Highlights:

  • Revenue: $675.7 million vs analyst estimates of $691.1 million (6% year-on-year decline, 2.2% miss)
  • Adjusted EPS: $0.68 vs analyst expectations of $1.38 (50.7% miss)
  • Adjusted EBITDA: $71.3 million vs analyst estimates of $86.47 million (10.6% margin, 17.5% miss)
  • Operating Margin: 2.9%, down from 10.6% in the same quarter last year
  • Organic Revenue fell 4.6% year on year (-1.6% in the same quarter last year)
  • Market Capitalization: $1.31 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Spectrum Brands’s Q1 Earnings Call

  • Pete Lucas (CJS Securities) asked how Spectrum Brands’ supply chain position compared to peers, to which CEO David Maura and CFO Jeremy Smeltser said their global sourcing scale and rapid transition out of China provide a relative advantage.
  • Peter Grom (UBS) inquired about the potential gross and net impact of tariffs on profitability. Smeltser explained that the effect depends on each business unit and that mitigation actions like stopping China orders are in place, making exact net impact hard to estimate.
  • Peter Grom (UBS) also questioned whether the emphasis on M&A signals a shift away from buybacks. Maura clarified that while share repurchases continue, balance sheet strength is prioritized to capitalize on future acquisition opportunities.
  • Olivia Tong (Raymond James) asked about the proportion of products remaining in China and the onboarding of new suppliers. Smeltser replied that around 15-20% of U.S. appliance SKUs may remain for now, but most new sourcing involves existing suppliers expanding operations outside China.
  • Olivia Tong (Raymond James) sought clarity on free cash flow drivers given inventory build. Smeltser highlighted disciplined cost and working capital management, noting that inventory build mainly reflects typical seasonal patterns, not tariff-related forward buying.

Catalysts in Upcoming Quarters

In the coming quarters, our team will monitor (1) the pace at which Spectrum Brands can shift its supply chains away from China, (2) the resilience of consumer demand for pet and garden products during seasonal peaks, and (3) management’s ability to protect margins amid ongoing tariff and inflation pressures. Successful execution of M&A strategy and further progress in cost control will also be important markers.

Spectrum Brands currently trades at $53.35, down from $61.84 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.