From Standard & Poor's Equity ResearchBear Stearns downgraded Spectrum Brands (SPC

) to peer perform from outperform. On Monday, the company said its third-quarter forecast for fiscal year 2006 (September) earnings per share would be substantially below guidance.

Analyst Peter Barry says little doubt remains that consensus EPS for the third quarter of 47 cents, and even his more-cautious 41 cents estimate, are measurably too high. He cut third-quarter EPS estimate to 25 cents, and 91 cents fiscal year 2006 forecast to 59 cents.

As for fiscal year 2007, he thinks there are still number of moving parts in the comapany's story that continue to suggest high forecasting risk (complex integration strategy, weak core business, tight debt covenant limitations); thus, he cut his $1.58 fiscal year 2007 EPS estimate to $1.30.