Energizer Holdings (ENR) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 6. ...

Core Viewpoint - Energizer Holdings, Inc. is set to report its Second Quarter Fiscal Year 2025 results on May 6, 2025, before market opening, followed by an investor conference call [1]. Company Overview - Energizer Holdings, headquartered in St. Louis, is a leading manufacturer and distributor of primary batteries, portable lights, and various auto care products [2]. - The company’s portfolio includes well-known brands such as Energizer, Armor All, Eveready, Rayovac, STP, and Varta, among others [2]. - Energizer aims to be a leader in its categories by effectively serving consumers and customers [2].

Group 1 - The current market environment is characterized by uncertainty, making it difficult to predict future developments [1] - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and companies that generate it [1] - The service aims to identify value and growth prospects within the oil and gas sector [1] Group 2 - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - The service encourages potential users to sign up for a two-week free trial to explore opportunities in the oil and gas market [3]

Core Viewpoint - Energizer Holdings, Inc. has successfully extended its $760 million Term Loan and $500 million Revolving Credit Facility, enhancing its debt capital structure and financial flexibility [1][2]. Group 1: Financial Transactions - The transactions are leverage neutral and extend the maturities of both facilities by more than four years, with the new Term Loan maturing in 2032 and the Revolving Credit Facility maturing in 2030 [1][3]. - The new Term Loan bears interest at a rate equal to Secured Overnight Financing Rate (SOFR) plus 200 basis points per annum [2]. - The Revolving Credit Facility bears interest at a rate equal to SOFR plus the applicable margin based on leverage [3]. Group 2: Management Commentary - The Chief Financial Officer expressed satisfaction with the execution of the credit facilities extension, highlighting it as a testament to the credit market's appreciation of the company's debt reduction track record and strong operating performance [2]. - The company aims to continue evaluating opportunities to extend debt maturities or improve its interest rate profile as part of its debt paydown and deleveraging objectives [2]. Group 3: Company Overview - Energizer Holdings is one of the world's largest manufacturers and distributors of primary batteries, portable lights, and auto care products, with a portfolio of globally recognized brands [4].

Core Viewpoint - Energizer Holdings reported strong first-quarter fiscal 2025 results, with both net sales and earnings exceeding estimates, while raising its organic sales guidance for the fiscal year [2][3][4]. Financial Performance - Adjusted earnings were 67 cents per share, beating the Zacks Consensus Estimate of 64 cents, and increased by 13.6% year over year [4]. - Net sales reached $731.7 million, surpassing the Zacks Consensus Estimate of $728 million, marking a 2.1% increase from the previous year [4]. - Organic net sales grew by 3.8% year over year [4]. Segment Performance - The Batteries & Lights segment saw net sales increase by 2.4% to $632.4 million, although segment profit decreased by 9.9% to $119.3 million [7]. - The Auto Care segment's net sales rose by 0.5% to $99.3 million, with segment profit increasing significantly by 197.1% to $20.5 million [7]. Margin and Cost Analysis - Adjusted gross margin expanded by 50 basis points to 40%, driven by Project Momentum, which generated approximately $16 million in savings [8]. - Adjusted SG&A expenses increased by 11.9% year over year to $119.2 million, influenced by higher depreciation and legal fees [9]. - Adjusted EBITDA was $140.7 million, reflecting a 5.9% year-over-year increase, with an adjusted EBITDA margin of 19.2% [10]. Financial Health - As of December 31, 2024, cash and cash equivalents stood at $195.9 million, with long-term debt of $3.12 billion [11]. - The company paid down an additional $25 million of debt during the fiscal first quarter, resulting in a net debt to adjusted EBITDA ratio of 4.7x [11]. Future Outlook - For the fiscal second quarter, organic growth is expected to be between 2% and 3%, with reported net sales projected to be flat to a 1% increase [12]. - The forecast for fiscal 2025 includes a reported net sales increase of 1% to 2%, with organic net sales guidance raised to 2% to 3% [14]. - Adjusted earnings per share for the year are anticipated to be between 60 cents and 70 cents, down from 72 cents in the prior year [13]. Industry Context - Energizer is part of the Zacks Consumer Products - Staples industry, where Procter & Gamble reported a revenue increase of 2.1% year over year [22].

Core Insights - Energizer Holdings, Inc. reported strong first-quarter fiscal 2025 results, with both net sales and earnings exceeding expectations and showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings per share were 67 cents, surpassing the Zacks Consensus Estimate of 64 cents, marking a 13.6% increase from the previous year [3] - Net sales reached $731.7 million, exceeding the Zacks Consensus Estimate of $728 million, and reflecting a 2.1% year-over-year increase [3] - Organic net sales grew by 3.8% year over year, surpassing the anticipated growth rate of 2.7% [3] Segment Performance - The Batteries & Lights segment saw net sales increase by 2.4% to $632.4 million, while segment profit decreased by 9.9% to $119.3 million [6] - The Auto Care segment's net sales increased by 0.5% to $99.3 million, with segment profit rising significantly by 197.1% to $20.5 million [6] Margin and Cost Analysis - Adjusted gross margin expanded by 50 basis points to 40%, driven by Project Momentum, which generated approximately $16 million in savings [7] - Adjusted SG&A expenses rose by 11.9% year over year to $119.2 million, influenced by higher depreciation and legal fees [8] - Adjusted EBITDA was $140.7 million, reflecting a 5.9% year-over-year increase, with an adjusted EBITDA margin of 19.2% [10] Financial Health - As of December 31, 2024, cash and cash equivalents were $195.9 million, with long-term debt at $3.12 billion and shareholders' equity of $140.6 million [11] - The company paid down an additional $25 million of debt during the quarter, resulting in a net debt to adjusted EBITDA ratio of 4.7x [11] Future Outlook - For the fiscal second quarter, organic growth is expected to be between 2% and 3%, with reported net sales projected to be flat to a 1% increase [14] - The fiscal 2025 outlook for reported net sales has been raised to an increase of 1% to 2%, with organic net sales expected to grow by 2% to 3% [16] - Adjusted earnings per share for fiscal 2025 are anticipated to be between 60 cents and 70 cents, down from 72 cents in the prior year [15]

Financial Performance - The Company reported net sales of $7.7 million and $12.3 million with operating profit of $1.9 million and $5.1 million for the three months ended December 31, 2024 and December 31, 2023, respectively[140]. - Net earnings for the first fiscal quarter of 2025 were $22.3 million, or $0.30 per diluted common share, compared to $1.9 million, or $0.03 per diluted common share in the prior year, representing a significant increase[153]. - Adjusted diluted net earnings per common share increased by approximately 14% to $0.67 from $0.59 in the prior year quarter[153]. - Total net sales for the first fiscal quarter of 2025 were $731.7 million, an increase of $15.1 million or 2.1% compared to the prior year[159]. - Organic net sales improved by 3.8%, driven by new distribution and hurricane-related volume increases of approximately $10 million[160]. - Gross margin percentage on a reported basis was 36.8%, down from 37.3% in the prior year, while adjusted gross margin improved to 40.0% from 39.5%[161]. - SG&A expenses were $131.3 million, or 17.9% of net sales, consistent with the prior year, with adjusted SG&A at $119.2 million, or 16.3% of net sales[163]. - Advertising and sales promotion expense increased to $53.4 million, or 7.3% of net sales, compared to $47.0 million, or 6.6% in the prior year[164]. - Battery & Lights segment net sales increased by 2.4%, with organic net sales improving by $24.9 million, or 4.0%[174]. - Auto Care reported a net sales increase of 0.5% year-over-year, with an organic net sales increase of $2.1 million, or 2.1%[175]. - Global reported segment profit increased by 0.4% compared to the prior year, with an organic profit increase of $8.2 million, or 5.9%[177]. - Auto Care's segment profit surged by 197.1% year-over-year, with an organic segment profit increase of $14.7 million, or 213.0%[179]. Currency and Economic Impact - The Company recognized $21.0 million in currency losses due to the devaluation of the Argentine Peso, including $14.7 million from remeasurement of monetary assets and $6.3 million in transactional currency exchange losses[141]. - The Company is subject to risks related to international operations, including currency fluctuations that could adversely affect results of operations[130]. - Energizer's foreign currency derivative contracts resulted in a loss of $8.4 million for the quarter ended December 31, 2024, compared to a gain of $3.2 million for the same quarter in 2023[208]. - The Egypt subsidiary's financial statements were consolidated under highly inflationary accounting effective October 1, 2024, due to a cumulative inflation rate exceeding 100 percent[216]. - The Argentina subsidiary's financial statements have been consolidated under highly inflationary accounting since July 1, 2018, and the economy remains highly inflationary as of December 31, 2024[217]. - Changes in non-functional currency balance sheet positions at foreign subsidiaries resulted in exchange gains or losses recorded in Other items, net[207]. Project Momentum and Restructuring - The Project Momentum program is expected to generate approximately $200 million in total pre-tax savings by the end of fiscal year 2025, with $161 million realized as of December 31, 2024[149]. - The Company incurred total Project Momentum restructuring and related pre-tax costs of $20.3 million and $22.4 million for the quarters ended December 31, 2024 and 2023, respectively[150]. - The restructuring component of Project Momentum is expected to incur one-time cash operating costs of $180 to $185 million and generate annual pre-tax savings of approximately $180 million[148]. - The Company’s future results may be impacted by operational execution and the ability to achieve cost savings from restructuring efforts[130]. Investments and Acquisitions - The Company acquired battery manufacturing assets in Belgium and all outstanding shares of Centralsul Ltda., enhancing its presence in Europe and Brazil[143][144]. - The Company recorded $2.6 million of acquisition and integration costs associated with the Belgium Acquisition during the three months ended December 31, 2023[146]. - The company entered into a share purchase agreement to acquire Advanced Power Solutions NV for a purchase price of EUR 26.8 million, expected to close in 2025[199]. Cash Flow and Debt - Cash flow from operating activities was $77.0 million, a decrease of $101.1 million year-over-year, primarily due to working capital changes[187]. - Net cash used by investing activities was $34.7 million, with capital expenditures of $34.6 million for the quarter[188]. - The company prepaid $22.0 million of the Term Loan during the quarter, resulting in a loss on extinguishment of debt of $0.1 million[185]. - As of December 31, 2024, the company had $195.9 million in cash and cash equivalents, with approximately 96% held outside the U.S.[182]. - The company has a contractual commitment to repay long-term debt of $3,105.0 million, with $12.0 million due within the next twelve months[197]. - The company had variable rate debt outstanding of $757.0 million under the 2020 Term Loan as of December 31, 2024[211]. - The weighted average interest rate on variable rate debt, inclusive of the interest rate swap, was 3.67% for the quarter ended December 31, 2024[213]. Other Financial Metrics - Incremental network transition costs of $14.0 million were incurred to maintain business continuity during the relocation of production lines[155]. - The effective tax rate for adjusted net earnings was 24.8%, slightly up from 24.0% in the prior year[169]. - General corporate and other expenses decreased to $27.4 million, representing 3.7% of net sales, down from 4.1% in the prior year[180]. - The company expects $7.3 million of the pre-tax gain included in accumulated other comprehensive loss to be recognized in earnings over the next twelve months[206]. - The company uses hedging instruments to reduce exposure to price volatility in raw materials, including zinc[209]. - The company has 16 open hedging contracts on future zinc purchases with a total notional value of approximately $24 million as of December 31, 2024[210].

Core Insights - Energizer Holdings (ENR) reported revenue of $731.7 million for the quarter ended December 2024, reflecting a year-over-year increase of 2.1% [1] - The earnings per share (EPS) for the quarter was $0.67, up from $0.59 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $727.99 million by 0.51%, while the EPS surpassed the consensus estimate of $0.64 by 4.69% [1] Financial Performance Metrics - Net Sales from Batteries & Lights amounted to $632.40 million, exceeding the four-analyst average estimate of $629.32 million, with a year-over-year change of 2.4% [4] - Net Sales from Auto Care reached $99.30 million, slightly above the estimated $98.69 million, representing a year-over-year increase of 0.5% [4] - Segment Profit for Auto Care was reported at $20.50 million, significantly higher than the estimated $7.28 million, while Segment Profit for Batteries & Lights was $119.30 million, below the average estimate of $134.27 million [4] Stock Performance - Over the past month, shares of Energizer have returned -2.1%, contrasting with the Zacks S&P 500 composite's increase of 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

•Organic. This is the non-GAAP financial measurement of the change in revenue or segment profit that excludes or otherwise adjusts for the change in hyperinflationary markets and impact of currency from the changes in foreign currency exchange rates as defined below: Q1 Fiscal 2025 Earnings February 4, 2025 + Forward-Looking Statements This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, esti ...

Group 1 - Energizer Holdings reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and up from $0.59 per share a year ago, representing an earnings surprise of 4.69% [1] - The company achieved revenues of $731.7 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.51%, compared to $716.6 million in the same quarter last year [2] - Energizer has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has underperformed the market, losing about 2.8% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $670.47 million, and for the current fiscal year, it is $3.58 on revenues of $2.93 billion [7] - The Zacks Industry Rank indicates that the Consumer Products - Staples sector is currently in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8]