Core Insights - Energizer Holdings reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.68 per share, and down from $0.72 per share a year ago, representing an earnings surprise of -1.47% [1] - The company posted revenues of $662.9 million for the quarter, missing the Zacks Consensus Estimate by 0.97%, and slightly down from $663.3 million year-over-year [2] - Energizer shares have declined approximately 25.8% year-to-date, contrasting with the S&P 500's decline of -3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $711.31 million, and for the current fiscal year, it is $3.58 on revenues of $2.93 billion [7] - The estimate revisions trend for Energizer is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Consumer Products - Staples industry, to which Energizer belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Edgewell Personal Care, is expected to report quarterly earnings of $0.90 per share, reflecting a year-over-year increase of 2.3% [9]

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]

Core Insights - Energizer Holdings, Inc. reported net sales of $662.9 million for the second fiscal quarter ended March 31, 2025, a slight decrease of 0.1% compared to $663.3 million in the prior year period, marking the fourth consecutive quarter of organic revenue growth of 1.4% [3][5][10] - The company achieved an adjusted gross margin of 40.8%, an improvement from 40.5% in the prior year, driven by Project Momentum initiatives [4][7][10] - Net earnings for the quarter were $28.3 million, or $0.39 per share, with adjusted earnings per share at $0.67, reflecting a decrease from $0.45 and $0.72 in the prior year, respectively [10][43] Financial Performance - Net sales for the second quarter were $662.9 million, down from $663.3 million in the same quarter last year, with organic growth of 1.4% [3][5] - Gross margin was reported at 39.1%, with an adjusted gross margin of 40.8%, up 30 basis points from the previous year's adjusted gross margin [5][7] - The company reported net earnings of $28.3 million, down from $32.4 million in the prior year, and adjusted EBITDA of $140.3 million, slightly lower than $142.5 million in the previous year [10][43] Strategic Initiatives - The company emphasized its investments in digital transformation and growth initiatives, which contributed to an increase in SG&A expenses to 18.8% of net sales, compared to 17.2% in the prior year [8][10] - Project Momentum delivered savings of approximately $16 million in the quarter, although this was partially offset by increased product costs and planned strategic pricing investments [7][10] - The company expects organic net sales for fiscal 2025 to be flat to up 2%, with adjusted EBITDA projected between $610 million and $630 million [12][14] Market Outlook - The CEO expressed a cautious outlook for the remainder of the year, anticipating a more cautious consumer environment impacting demand [2][12] - The company expects limited direct impact from tariffs due to completed sourcing shifts and pricing actions [5][12] - For the third quarter, reported and organic net sales are expected to be flat to down 2%, with adjusted earnings per share projected between $0.55 and $0.65 [14]

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].

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].

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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]