Why Shares of Spectrum Brands Are Up 10% After Missing on the Bottom Line

Why Shares of Spectrum Brands Are Up 10% After Missing on the Bottom Line

Shares of Spectrum Brands Holdings, Inc. (NYSE: SPB), a leading supplier of batteries, appliances, hardware, and home-improvement products, among other product segments, are spiking 10% as of 3 p.m. EST on Thursday. This comes after the company posted a solid fourth quarter, despite missing profit estimates.

Spectrum recorded revenue of $1.32 billion during the fourth quarter, topping Wall Street estimates calling for $1.3 billion. But the top-line beat wouldn't filter to the company's bottom line, as its adjusted earnings per share checked in at $1.35, below analysts' estimates calling for $1.46 per share.

However, there were enough bright spots in the data that investors were able to shrug off the bottom-line miss. One such bright spot: Organic sales grew 3.1% during the quarter, net of acquisitions and currency impacts. Organic adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 5%, with margin increasing 50 basis points to 19.5%. Arguably the brightest spot was the company's e-commerce, which jumped 50% in its core U.S. market.

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Source: Fool.com