Why Spectrum Brands Stock Rocked the Market on Thursday

Consumer goods conglomerate Spectrum Brands (SPB +9.71%) had a mixed fiscal fourth quarter of 2025 as detailed in the earnings release it published Thursday morning. Investors clearly chose to focus on the crushing net-income beat rather than the revenue miss, as they drove the company’s stock price up by almost 10% during that trading session.

Rising to the challenge

Despite investors’ focus on income, Spectrum Brands’ net sales for the quarter declined more than 5% year over year. They landed at $733.5 million, which fell short of the consensus analyst estimate of over $734 million.

Going in a radically different direction was the company’s net income from continuing operations, which increased more than four times to $53.3 million. On a per-share basis, rather than according to generally accepted accounting principles (GAAP), that rise wasn’t quite as dramatic; still, profitability ballooned ($2.61 from the year-ago $0.97). On average, pundits tracking the stock were modeling only $0.90.

Spectrum Brands experienced significant disruption to its business due to the government’s punitive tariffs, which particularly affected imports from China. Despite these challenges, it managed to post sales growth in one of its three reporting segments — home and garden.

Growing with homes, pets, and gardens

Spectrum Brands didn’t proffer detailed guidance but did say that in the current fiscal year (2026), it believes its two “highest value businesses” — Home and Garden, and Global Pet Care — will post growth compared to 2025. It added that it “sees signs of stabilization” in the pair.