Spectrum Brands Holdings Inc. (SPB) stock is soaring 10.88% in pre-market trading following the release of its fiscal 2025 fourth-quarter results. The consumer products company reported a significant increase in earnings, substantially surpassing analyst expectations despite facing sales challenges.

Spectrum Brands announced adjusted earnings from continuing operations of $2.61 per share for the fourth quarter, a remarkable increase from $0.97 per share in the same period last year. This figure considerably outperformed the FactSet analyst consensus of $0.90 per share. Net income from continuing operations rose to $53.2 million, or $2.29 per share, up from $12.7 million, or $1.01 per share, in the prior year. However, net sales for the quarter declined by 5.2% to $733.5 million, falling short of Wall Street's expectation of $738.9 million.

The company attributed the sales decrease to weak consumer sentiment and supply shortages resulting from an earlier pause in orders due to tariffs on Chinese imports. CEO David Maura acknowledged the challenging macroeconomic environment and the impact of the company's decision to halt imports from China for the U.S. market earlier in the year. Looking ahead, Spectrum Brands provided guidance for fiscal 2026, projecting flat to low single-digit net sales growth and a low single-digit increase in adjusted EBITDA, indicating cautious optimism for the future despite current challenges.