Shareholders of Spectrum Brands Holdings, Inc. (NYSE:SPB) will be pleased this week, given that the stock price is up 19% to US$75.72 following its latest first-quarter results. It looks like a credible result overall - although revenues of US$677m were what the analysts expected, Spectrum Brands Holdings surprised by delivering a (statutory) profit of US$1.21 per share, an impressive 56% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Spectrum Brands Holdings after the latest results.

Following last week's earnings report, Spectrum Brands Holdings' seven analysts are forecasting 2026 revenues to be US$2.83b, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 13% to US$5.11. Before this earnings report, the analysts had been forecasting revenues of US$2.82b and earnings per share (EPS) of US$4.31 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.7% to US$85.29. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Spectrum Brands Holdings analyst has a price target of US$95.00 per share, while the most pessimistic values it at US$72.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Spectrum Brands Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Spectrum Brands Holdings'historical trends, as the 2.3% annualised revenue growth to the end of 2026 is roughly in line with the 1.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.2% per year. So although Spectrum Brands Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Spectrum Brands Holdings following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Spectrum Brands Holdings' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Spectrum Brands Holdings going out to 2028, and you can see them free on our platform here..

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.