On Monday, the Dow Jones Industrial Average plunged almost 400 points, or 1.4%, to 25,058. Falling shares of tech and internet companies impacted the main indexes.
Shares of Spectrum Brands Holdings Inc. (SPB, Financial) fell 18% after the company posted fourth-quarter earnings of 79 cents per share on $787.8 million in revenue, which was flat year over year. The company fell 29 cents short or earnings estimates and $13.18 million short of revenue expectations.
In the fourth quarter, adjusted earnings before interest, taxes, depreciation and amortization were $134.1 million, a 23.1% decline from $174.5 million in the prior-year quarter. Excluding the positive impact of $2 million in foreign exchange effects, organic adjusted earnings before interest, taxes, depreciation and amortization of $132.1 million fell 24.3% from the year-ago quarter.Â
The adjusted EBITDA margin was 17%, a decrease of more than 500 basis points as a result of operating inefficiencies, higher costs caused by inflation and higher distribution costs.
Further, lower EBITDA and higher year-end inventory levels impacted the adjusted free cash flow, which was $386 million.
Looking ahead to fiscal 2019, the company expects adjusted EBITDA from continuing operations in the range of $560 million to $580 million.
Disclosure:The author holds no position in any stocks mentioned.
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