Spectrum Brands Q3 Sales Misses Consensus, Backs FY21 Outlook

Spectrum Brands Holdings Inc SPB reported third-quarter FY21 sales growth of 18.1% year-on-year, to $1.163 billion, missing the analyst consensus of $1.18 billion. Organic net sales increased 12.0%.
Net sales from the Hardware & Home Improvement segment rose 48.8% Y/Y, Home & Personal Care increased 9.5%, Global Pet Care sales gained 6.5%, and Home & Garden rose 0.7%.
Gross profit rose 16.8% Y/Y to $407.4 million with a profit margin contracted 40 basis points to 35%.
The operating margin was 8.2%, and operating income for the quarter rose 3.5% to $98 million.
The company held $130.2 million in cash and equivalents as of July 4, 2021. Net cash provided by operating activities for nine months amounted to $8.9 million.
Adjusted EBITDA of $167.4 million rose 1.8% Y/Y.
Adjusted EPS of $1.57 met the analyst consensus estimate.
Outlook: Spectrum Brands continues to expect mid-teens reported net sales growth, with a positive impact from the foreign exchange based upon current rates.
Adjusted EBITDA to increase mid-teens and Adjusted free cash flow of $260 million - $280 million.
Price action: SPB shares traded lower by 1.31% at $82.0 on the last check Friday.

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