Spectrum Brands (SPB) continued its strong performance into fiscal Q4, sacrificing some profitability for brand investments that position the company well "to deliver against likely conservative top-line guidance," RBC Capital Markets said in a note Monday.

The company exceeded Street estimates in each of its three segments in fiscal Q4, marking its second straight quarter of broad-based, top-line growth, analysts including Nik Modi said.

The main drivers were higher volumes in the Global Product Categories segment, favorable weather resulting in an extended season and

improved inventories in Home and Garden, and global sales growth in the Home Appliance and Personal Care categories, the analysts said.

Management "vaguely indicated" that the separation of the company's Home & Personal Care business has been delayed due to geopolitical tensions, including the election results and the risk of new tariffs, as most of the business's products are sourced from China.

"In our view, looming tariff risk undoubtedly makes a sale or spinoff less straightforward, though not impossible," the analysts said.

RBC maintained its outperform rating and $114 price target on Spectrum Brands.

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