Spectrum Brands’ stock rallies after profit, sales rise above expectations

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Shares of Spectrum Brands Holdings Inc. rose 2.8% in premarket trading Friday, after the home, pet and garden care products company reported fiscal fourth-quarter profit and sales that rose above expectations, citing elevated demand and strong point-of-sale amid a “quick recovery” from COVID-19-related supply disruptions. For the quarter to Sept. 30, the parent of brands including Pfister, IAMS, Black+Decker and Remington swung to net income of $45.4 million, or $1.05 a share, from a loss of $95.7 million, or $1.97 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $1.72 from $1.13, above the FactSet consensus of $1.30. Sales grew 17.9% to $1.17 billion, beating the FactSet consensus of $1.03 billion, as hardware and home improvement sales rose 18.9%, home and personal care sales grew 5.8%, pet care sales climbed 21.6% and home and garden sales increased 37.8%. For fiscal 2021, the company expects sales growth of 3% to 5%, while the current FactSet consensus of $3.96 billion implies a 0.1% decline for 2020 sales of $3.96 billion. The stock has slipped 1.2% year to date through Thursday, while the S&P 500 has gained 9.5%.
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