It has been about a month since the last earnings report for Energizer Holdings (ENR) . Shares have added about 2.6% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Energizer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since The ...

Energizer Holdings, Inc. (ENR) reported second-quarter fiscal 2025 results, wherein both net sales and earnings lagged the Zacks Consensus Estimate. Also, the top and bottom lines decreased year over year.The company reported modest growth in its battery segment but faced declines in Auto Care due to shipment timing shifts. Energizer introduced its new Podium Series, which saw widespread distribution across numerous stores. Gross margins improved, aided by cost-saving initiatives, while strategic refinancin ...

Financial Performance - The Company reported net sales of $9.2 million and $7.1 million for the quarters ended March 31, 2025, and 2024, respectively, and $16.9 million and $19.4 million for the six months ended March 31, 2025, and 2024, respectively [143]. - Operating profit for the quarters ended March 31, 2025, and 2024, was $2.4 million and $1.4 million, respectively, and for the six months ended March 31, 2025, and 2024, was $4.3 million and $6.6 million, respectively [143]. - For the second fiscal quarter ended March 31, 2025, net earnings were $28.3 million, or $0.39 per diluted common share, compared to $32.4 million, or $0.45 per diluted common share in the prior year [157]. - For the six months ended March 31, 2025, net earnings increased to $50.6 million, or $0.69 per diluted common share, from $34.3 million, or $0.47 per diluted common share in the prior year [158]. - Total net sales for Q2 2025 were $662.9 million, a slight decrease of 0.1% compared to $663.3 million in the prior year [183]. Project Momentum - The Project Momentum program is expected to generate approximately $200 million in pre-tax savings by the end of fiscal 2025, with $181 million realized as of March 31, 2025 [153]. - Total Project Momentum restructuring and related pre-tax costs for the quarter ended March 31, 2025, were $17.6 million, down from $23.4 million in the prior year [154]. - Project Momentum delivered savings of approximately $16 million in the second fiscal quarter, contributing to adjusted gross margin improvement [169]. - Incremental network transition costs related to Project Momentum were $2.7 million for the quarter and $16.7 million for the six months ended March 31, 2025 [156]. Currency and Economic Impact - The Company experienced currency and related losses of $1.0 million and $22.0 million in the three and six months ended March 31, 2024, respectively, due to the economic reform in Argentina [144]. - The impact of currency, excluding hyperinflationary markets, negatively affected earnings by $2.7 million, or $0.03 per share, for the quarter ended March 31, 2025 [161]. - The macroeconomic environment remains challenging, with inflationary pressures and geopolitical instability expected to continue affecting operations and consumer demand in fiscal 2025 [141]. - The Company anticipates continued declines in operating profit due to rising costs from the devaluation of the Argentine Peso [143]. Costs and Expenses - The Company recorded $2.3 million and $3.5 million in SG&A of legal fees and other costs associated with acquisitions during the quarter and six months ended March 31, 2025, respectively [149]. - SG&A for Q2 2025 was $136.0 million, or 20.5% of net sales, up from $122.5 million, or 18.5% in the prior year [171]. - Adjusted SG&A for the first half of 2025 was $243.7 million, or 17.5% of net sales, compared to $231.7 million, or 16.8% in the prior year [172]. - Advertising and sales promotion expense (A&P) was $20.8 million, or 3.1% of net sales, in Q2 2025, down from $21.4 million, or 3.2% in Q2 2024 [173]. - R&D expenses were $8.1 million, or 1.2% of net sales, for Q2 2025, consistent with the prior year [174]. Debt and Financing - The company entered into an amended agreement extending the term of its $760 million Senior Secured Term Loan to 2032 and its $500 million Revolving Credit Facility to 2030 [198]. - The company has a contractual commitment to repay long-term debt of $3,138 million, with $5.7 million due within the next twelve months [211]. - Net cash used by financing activities was $81.7 million for the six months ended March 31, 2025, compared to $193.9 million in the prior year [203]. Cash Flow and Investments - Cash flow from operating activities was $64.2 million for the six months ended March 31, 2025, a decrease of $150.7 million compared to the prior year, primarily due to working capital changes [201]. - Net cash used by investing activities was $55.7 million for the six months ended March 31, 2025, with anticipated capital expenditures of approximately $80 to $90 million for fiscal 2025 [202]. Segment Performance - Battery & Lights segment net sales increased by 1.5% to $488.0 million in Q2 2025, driven by organic growth of $14.2 million, or 3.0% [184]. - Auto Care segment net sales decreased by 4.1% to $174.9 million in Q2 2025, with an organic decline of $4.8 million, or 2.6% [185]. - Global segment profit decreased by 4.2% to $147.5 million in Q2 2025, with an organic profit decline of $3.8 million, or 2.5% [189]. - Battery & Lights reported a segment profit decrease of 5.8% year-over-year, with an organic segment profit decline of $6.8 million, or 2.8%, due to increased SG&A and A&P spending [193]. - Auto Care achieved a segment profit increase of 17.8% year-over-year, with an organic segment profit rise of $11.2 million, or 23.7%, driven by improved gross margin from Project Momentum savings [194]. Taxation - The effective tax rate for adjusted net earnings for the quarters ended March 31, 2025, and 2024 was 23.1% and 23.3%, respectively [164]. - The effective tax rate year-to-date was 23.9%, down from 33.8% in the prior year, primarily due to charges from the December 2023 Argentina Reform [179]. Hedging and Derivatives - The Company reported a gain of $3.5 million and a loss of $2.7 million on foreign currency derivative contracts for the quarters ended March 31, 2025, and 2024, respectively [221]. - The Company has 16 open hedging contracts for future zinc purchases with a total notional value of approximately $29 million as of March 31, 2025 [223]. - The Company recorded an unrealized pre-tax gain of $36.3 million on the interest rate swap as of March 31, 2025, compared to $39.8 million as of September 30, 2024 [226]. - The unrealized pre-tax loss on the zinc hedging contracts was $0.3 million as of March 31, 2025, compared to an unrealized pre-tax gain of $4.0 million as of September 30, 2024 [223]. Inflationary Accounting - The financial statements for the Egypt subsidiary were consolidated under highly inflationary accounting effective October 1, 2024, due to a cumulative inflation rate exceeding 100% [228]. - The Argentina subsidiary's financial statements have been consolidated under highly inflationary accounting since July 1, 2018, and remain highly inflationary as of March 31, 2025 [229]. - The impact of highly inflationary accounting for Egypt and Argentina on consolidated financial statements is uncertain and depends on exchange rate movements and monetary assets and liabilities [230].

Energizer (ENR) Q2 2025 Earnings Call May 06, 2025 10:00 AM ET Company Participants Jon Poldan - Vice President, Treasurer & Investor RelationsMark LaVigne - President and CEOJohn Drabik - Executive VP & CFOBill Chappell - Managing DirectorLauren Lieberman - Managing DirectorRobert Ottenstein - Senior Managing Director & head of the Global Beverages and Household Products TeamCarla Casella - Managing Director Conference Call Participants Peter Grom - Equity Research AnalystWilliam Reuter - AnalystAndrea Tei ...

Energizer (ENR) Q2 2025 Earnings Call May 06, 2025 10:00 AM ET Company Participants Jon Poldan - Vice President, Treasurer & Investor RelationsMark LaVigne - President and CEOJohn Drabik - Executive VP & CFOBill Chappell - Managing DirectorLauren Lieberman - Managing DirectorRobert Ottenstein - Senior Managing Director & head of the Global Beverages and Household Products TeamCarla Casella - Managing Director Conference Call Participants Peter Grom - Equity Research AnalystWilliam Reuter - AnalystAndrea Tei ...

Energizer (ENR) Q2 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Energizer Holdings Inc. Second quarter two thousand twenty five results conference call. At this time, all lines are in listen only mode. And following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded on Tuesday, 05/06/2025. I would now like ...

Q2 Fiscal 2025 Earnings May 6, 2025 + This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, costs, earnings, cash flows, tax rates and performance of the Company. These statements generally can be identified by the use of forward-looking words or phrases such as "believ ...

Financial Performance - Net sales for the second fiscal quarter were $662.9 million, a slight decrease of 0.1% compared to $663.3 million in the prior year period, with organic growth of 1.4%[4] - Net earnings were $28.3 million, or $0.39 per share, while adjusted earnings per share were $0.67, down from $0.72 in the prior year[9] - Net sales for the quarter ended March 31, 2025, were $662.9 million, a slight decrease of 0.06% compared to $663.3 million for the same quarter in 2024[24] - Net earnings for the six months ended March 31, 2025, were $50.6 million, representing a significant increase of 47.5% compared to $34.3 million in 2024[28] - Total net sales for the current year reached $1,394.6 million, reflecting a 1.1% increase compared to the prior year[54] Margins and Profitability - Gross margin for the quarter was reported at 39.1%, with an adjusted gross margin of 40.8%, reflecting a 30 basis points improvement over the prior year[5] - Gross profit for the six months ended March 31, 2025, increased to $528.6 million, up 1.1% from $520.3 million in the prior year[24] - Segment profit for Batteries & Lights was $112.3 million for the quarter ended March 31, 2025, down 1.1% from $113.5 million in the prior year[41] - Total segment profit for the six months ended March 31, 2025, was $287.3 million, a decrease of 2.0% from $293.2 million in the same period of 2024[41] - Adjusted EBITDA for the quarter ended March 31, 2025, was $140.3 million, reflecting a decrease of 1.5% compared to $142.5 million in the prior year[51] Expenses and Costs - Selling, General and Administrative expenses (SG&A) were 18.8% of net sales, totaling $124.5 million, an increase from 17.2% or $113.9 million in the prior year[7] - Advertising and Promotion expenses decreased to 3.1% of net sales, down from 3.2% in the prior year[8] - The company incurred $8.1 million in research and development expenses for the quarter ended March 31, 2025, compared to $7.9 million in the same quarter of 2024[24] - Reported SG&A expenses for Q2'25 were $136.0 million, representing 20.5% of net sales[56] - Restructuring and related costs totaled $37.9 million for the six months ended March 31, 2025[57] Cash Flow and Debt - Free cash flow for the six months ended March 31, 2025, was $8.6 million, representing 0.6% of net sales[19] - Cash flow from operating activities for the six months ended March 31, 2025, was $64.2 million, a decrease of 70% from $214.9 million in 2024[28] - Total debt as of March 31, 2025, was $3,163.2 million, down from $3,207.7 million as of September 30, 2024[59] - The company reported a net debt of $3,023.9 million as of March 31, 2025, compared to $2,990.8 million as of September 30, 2024[59] Future Outlook - The company expects fiscal 2025 organic net sales to be flat to up 2%, with adjusted EBITDA projected between $610 million and $630 million, and adjusted earnings per share between $3.30 and $3.50[14] - The company anticipates a more cautious consumer outlook for the remainder of the year due to economic volatility and tariff uncertainties[13] - The fiscal 2025 outlook projects adjusted net earnings between $168 million and $194 million, with adjusted EPS ranging from $2.29 to $2.65[61] - The company anticipates adjusted EBITDA for fiscal 2025 to be between $492 million and $530 million[61] - Restructuring and related costs are expected to impact adjusted net earnings by approximately $40 million for fiscal 2025[61] Currency Impact - The impact of currency fluctuations reduced total net sales by $17.8 million, or 1.2%[54] - The company recorded $1.0 million and $22.0 million in currency exchange and related losses due to the December 2023 Argentina Economic Reform for the quarter and six months ended March 31, 2024, respectively[44]

Net sales of $662.9 million driven by organic growth of 1.4%, offset by currency headwinds of 1.7%, resulting in the fourth consecutive quarter of organic revenue growth.1 Gross margin for the second quarter was 39.1% and 40.8% as adjusted, a 30 bps improvement over prior year Adjusted Gross margin.1 Delivered Net Earnings of $28.3 million, or $0.39 per share, Adjusted Earnings per share of $0.67 and Adjusted EBITDA of $140.3 million.1 The Company expects limited direct impact from tariffs to fiscal 2025 r ...

Core Viewpoint - Energizer Holdings (ENR) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending March 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Energizer's quarterly earnings is $0.68 per share, reflecting a year-over-year decrease of 5.6%. Revenues are projected to be $669.4 million, which is a 0.9% increase from the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 1.45%, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Energizer is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.22%. This suggests a bearish sentiment among analysts regarding the company's earnings prospects [10][11]. Historical Performance - In the last reported quarter, Energizer was expected to post earnings of $0.64 per share but exceeded expectations with actual earnings of $0.67, resulting in a surprise of +4.69%. The company has beaten consensus EPS estimates in the last four quarters [12][13]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 4 indicates that Energizer may not be a compelling candidate for an earnings surprise, suggesting investors should consider other factors before making investment decisions [11][16].