Spectrum Brands Holdings, Inc. SPB is slated to report third-quarter fiscal 2021 results on Aug 6, before the opening bell. This global consumer products company is likely to have witnessed revenue and earnings growth in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal third-quarter earnings moved 7% south to $1.59 per share in the past 30 days. However, the consensus mark indicates an improvement of 16.9% from the year-ago quarter’s reported figure. The consensus mark for revenues is pegged at $1,140 million, indicating growth of 15.8% from the figure reported in the year-ago quarter.

In the last reported quarter, the company delivered an earnings surprise of 83.3%. It delivered an earnings surprise of 83.1%, on average, in the trailing four quarters.

Factors to Note

Spectrum Brands has been benefiting from solid demand and new product launches, which are driving growth in all business categories. Positive product mix and better productivity related to the Global Productivity Improvement Program have been key drivers. The Global Productivity Improvement Plan, which aims at improving its operating efficiency and effectiveness, is likely to have contributed to revenues in the fiscal third-quarter results.

In sync with its Global Productivity Improvement Plan, the company’s Global Pet Care business remains on track with exiting non-core assets to focus on core brands. The newly acquired Omega Sea and Armitage Pet Care brands are expected to have favored the segment’s growth in the quarter under review. Management is also on track with its plans to tap into the aquatics and reptile space. Strong e-commerce sales along with a spike in demand for aquatics and reptile kits and equipment act as key growth drivers. In fact, the Zacks Consensus Estimate for sales in this unit is pegged at $291 million, which implies an increase of 20.2% year over year.

However, it is still reeling under increased advertising and marketing costs and elevated incentive and distribution expenses. Higher freight and raw-material costs along with pandemic-led supply-related disruptions and gross tariff headwinds remain significant concerns.

Spectrum Brands Holdings Inc. Price and EPS Surprise

Spectrum Brands Holdings Inc. price-eps-surprise | Spectrum Brands Holdings Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Spectrum Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Spectrum Brands has a Zacks Rank #3 but an Earnings ESP of -6.63%.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Gildan Activewear, Inc. GIL has an Earnings ESP of +1.41% and a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

WillScot Mobile Mini Holdings WSC currently has an Earnings ESP of +14.00% and a Zacks Rank #2.

lululemon athletica LULU currently has an Earnings ESP of +15.43% and a Zacks Rank #3.

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