Core Insights - Edgewell Personal Care (EPC) reported a revenue of $478.4 million for the quarter ended December 2024, reflecting a decrease of 2.2% year-over-year [1] - The earnings per share (EPS) for the quarter was $0.07, down from $0.24 in the same quarter last year, indicating a significant decline [1] - The reported revenue was below the Zacks Consensus Estimate of $480.06 million by 0.35%, and the EPS fell short of the consensus estimate of $0.13 by 46.15% [1] Financial Performance Metrics - Net Sales in Feminine Care were $63.30 million, which is 11.8% lower than the year-ago quarter and below the average estimate of $69.21 million [4] - Net Sales in Wet Shave reached $294.50 million, slightly below the estimated $295.40 million, representing a 2.4% decline year-over-year [4] - Net Sales in Sun and Skin Care amounted to $120.60 million, exceeding the average estimate of $115.41 million, and showing a year-over-year increase of 4.5% [4] Stock Performance - Over the past month, shares of Edgewell Personal have returned +0.3%, compared to a +2.1% change in the Zacks S&P 500 composite [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]

Financial Performance - Net sales for the first quarter of fiscal 2025 decreased by $10.5 million, or 2.1%, to $478.4 million compared to the prior year quarter [104]. - Organic net sales decreased by $6.5 million, or 1.3%, with international markets growing by 2.0% driven by price and volume gains [104]. - Net (loss) earnings for the first quarter of fiscal 2025 were $(2.1) million, compared to $4.8 million in the prior year quarter [104]. - Adjusted net earnings for the first quarter of fiscal 2025 were $3.3 million, down from $12.0 million in the prior year quarter [104]. - Diluted net (loss) earnings per share were $(0.04) compared to $0.09 in the prior year quarter [104]. - Gross profit for the first quarter of fiscal 2025 was $191.6 million, a decrease of $6.1 million, or 3.1%, from the prior year quarter [107]. - Gross margin as a percentage of net sales decreased by 30 basis points to 40.1%, impacted by approximately 140 basis points of negative foreign currency [107]. - Adjusted gross margin as a percentage of net sales also decreased by 60 basis points to 40.1% due to increased promotional levels and core inflation [107]. Sales Performance by Segment - Organic sales in North America declined by 3.9%, primarily due to decreases in Wet Shave and Feminine Care [104]. - Wet Shave net sales decreased by $7.2 million, or 2.4%, to $294.5 million, with a 1.1% unfavorable currency impact [119]. - Sun and Skin Care net sales increased by $5.2 million, or 4.5%, to $120.6 million, with organic growth of 5.1% [121]. - Feminine Care net sales fell by $8.5 million, or 11.8%, to $63.3 million, with organic sales down 11.7% [124]. Expenses and Costs - SG&A expenses were $102.9 million, or 21.5% of net sales, in Q1 fiscal 2025, compared to $103.3 million, or 21.1% in the prior year [108]. - Advertising and sales promotion expenses increased by $2.1 million, or 4.4%, to $50.3 million, representing 10.5% of net sales, up from 9.9% in the prior year [109]. - R&D expenses rose to $13.9 million, an increase of $0.6 million, or 4.5%, accounting for 2.9% of net sales, compared to 2.7% in the prior year [110]. Debt and Financing - Interest expense associated with debt decreased by $1.0 million, or 5.1%, to $18.8 million due to a lower overall debt balance [113]. - Total borrowings increased to $1,476.2 million as of December 31, 2024, from $1,308.5 million at the end of September 2024 [131]. - Net cash provided by financing activities was $109.9 million in Q1 fiscal 2025, up from $69.8 million in the prior year period [138]. - Net borrowings under the Revolving Credit Facility were $165.0 million in Q1 fiscal 2025, compared to $91.0 million in the prior year period [138]. - As of December 31, 2024, outstanding borrowings under the Revolving Credit Facility were $199.0 million [143]. - Future minimum repayments of debt include $750.0 million in fiscal 2028 and $500.0 million in fiscal 2029 [143]. - Assuming a one-percent increase in interest rates, annual interest expense on variable-rate debt instruments would increase by approximately $2.3 million [148]. Cash Flow and Dividends - Cash flow used for operating activities was $115.6 million in Q1 fiscal 2025, up from $72.9 million in the prior year, driven by changes in net working capital [136]. - Dividend payments totaled $7.9 million in Q1 fiscal 2025, an increase from $7.6 million in the prior year period [138]. - Dividends declared during the three months ended December 31, 2024, totaled $7.1 million [142]. - A quarterly cash dividend of $0.15 per common share was declared for Q1 fiscal 2025, payable on April 9, 2025 [141]. - Share repurchases amounted to $30.3 million for 0.8 million shares in Q1 fiscal 2025, compared to $15.0 million in the prior year period [139]. Taxation - The effective tax rate for Q1 fiscal 2025 was (21.7)%, compared to 20.1% in the prior year, with an adjusted rate of 43.6% [115]. Currency Impact - The unfavorable impact from currency movements on net sales was $4.0 million, or 0.8% [106]. - As of December 31, 2024, the company had no open derivative or hedging instruments for future purchases of raw materials or commodities [148].

Core Insights - Edgewell Personal Care (EPC) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.13 per share, and down from $0.24 per share a year ago, representing an earnings surprise of -46.15% [1] - The company posted revenues of $478.4 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.35% and down from $488.9 million year-over-year [2] - Edgewell Personal has underperformed the market, with shares losing about 6% since the beginning of the year compared to the S&P 500's gain of 2.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $605.77 million, and for the current fiscal year, it is $3.19 on revenues of $2.28 billion [7] - The estimate revisions trend for Edgewell Personal is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Edgewell Personal belongs, is currently in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Edgewell's stock performance [5]

Financial Performance - Net sales for Q1 2025 were $478.4 million, a decrease of 2.1% year-over-year, with organic net sales down 1.3%[5]. - GAAP diluted EPS was $(0.04), compared to $0.09 in the prior year quarter, while adjusted EPS was $0.07, reflecting a $0.17 unfavorable impact from currency movements[5][15]. - Gross profit decreased to $191.6 million, with a gross margin of 40.1%, down 30 basis points from the prior year, impacted by approximately 140 basis points of negative foreign currency[8]. - Operating income decreased to $20.3 million from $26.1 million, indicating a decline of 22.2% year-over-year[37]. - The company reported a net loss of $2.1 million, compared to net earnings of $4.8 million in the prior year, resulting in a diluted loss per share of $0.04[37]. - Total adjusted non-GAAP income for Q1 2025 was $46.4 million, a decrease of 22.3% compared to Q1 2024[51]. - Adjusted EBITDA for Q1 2025 is projected to be approximately $356 - $368 million, down from $57.2 million in Q1 2024[57]. Market Performance - International markets saw a 2.0% growth, driven by price and volume gains, while North America organic sales declined by 3.9%[7]. - Organic net sales for the Feminine Care segment decreased by 11.7% in Q1 2025[50]. - GAAP reported net sales for Q1 2025 decreased by 2.1% to $478.4 million compared to Q1 2024[50]. Shareholder Returns - The company returned $38 million to shareholders through share repurchases of $30 million and dividends of $8 million in Q1 2025[5]. - The Board declared a cash dividend of $0.15 per common share for Q1 2025, payable on April 9, 2025[18]. Future Outlook - Full-year adjusted EPS is now expected to be in the range of $3.15 to $3.35, reflecting increased anticipated negative foreign currency changes[22]. - Organic net sales for the full fiscal year are projected to grow between 1% to 3%, with currency expected to negatively impact reported net sales by 160 basis points[23]. - Adjusted EBITDA is expected to be towards the lower end of the range of $356 to $368 million, including an estimated $23 million unfavorable impact from foreign currency changes[23]. - Adjusted EPS outlook for fiscal 2025 is projected to be between $3.15 - $3.35, with GAAP EPS estimated at $2.54 - $2.74[55]. - The effective tax rate for adjusted earnings is projected to be approximately 22.8% for fiscal 2025[55]. Cash Flow and Debt - The company ended Q1 2025 with $176 million in cash and a net debt leverage ratio of 3.8x[5]. - Cash and cash equivalents at the end of the period were $175.5 million, down from $209.1 million at the beginning of the period[42]. - Free cash flow conversion was negative, with net cash used for operating activities amounting to $115.6 million[42]. - Long-term debt increased to $1,440.6 million from $1,275.0 million, reflecting a rise in leverage[39]. - Net debt increased to $1,292.3 million as of December 31, 2024, up from $1,090.4 million at the end of September 2024[53]. Operational Challenges - The company experienced a decrease in inventories, which rose to $501.6 million from $477.3 million, indicating potential supply chain challenges[39]. - The company incurred restructuring and repositioning costs of approximately $4.2 million in Q1 2025[54]. - The company plans to continue focusing on organic growth and improving operational efficiency despite current financial challenges[32]. Segment Performance - Total segment profit for the three segments was $46.4 million, down from $59.7 million, with Wet Shave segment profit decreasing to $46.6 million from $53.7 million[46]. - Segment profit for the Wet Shave category decreased by 13.2% to $46.6 million in Q1 2025[51].

Core Insights - Edgewell Personal Care Company reported a decrease in net sales by 2.1% to $478.4 million for the first fiscal quarter of 2025, with organic net sales down 1.3% [1][5][13] - The company updated its full-year outlook, reflecting the impact of foreign currency changes, with GAAP EPS expected to range from $2.54 to $2.74 [1][19][21] Financial Performance - Gross profit for the quarter was $191.6 million, down from $197.7 million in the prior year, with a gross margin of 40.1%, a decrease of 30 basis points [6][10] - Adjusted EBITDA was reported at $45.9 million, down from $57.2 million in the prior year, impacted by an unfavorable currency effect of $11.2 million [14][39] - The company recorded a net loss of $2.1 million or $0.04 per diluted share, compared to a profit of $4.8 million or $0.09 per diluted share in the prior year [13][39] Segment Performance - Wet Shave segment net sales decreased by $7.2 million or 2.4%, while organic net sales decreased by $4.0 million or 1.3% [16][41] - Sun and Skin Care segment net sales increased by $5.2 million or 4.5%, with organic net sales up by $5.9 million or 5.1% [17][41] - Feminine Care segment net sales decreased by $8.5 million or 11.8%, with organic segment profit down by 53.4% [18][41] Cost and Expenses - Advertising and sales promotion expenses increased to $50.3 million, representing 10.5% of net sales, up from 9.9% in the prior year [7] - Selling, general and administrative expenses were $102.9 million, or 21.5% of net sales, slightly up from 21.1% in the prior year [8] - The company incurred restructuring and repositioning expenses of $4.2 million during the quarter [9] Cash Flow and Capital Allocation - The company ended the quarter with $176 million in cash and a net debt leverage ratio of 3.8x [13] - During the first quarter, Edgewell returned $38 million to shareholders through share repurchases and dividends [15] Outlook - The company expects organic net sales growth in the range of 1% to 3% for fiscal 2025, with adjusted EPS anticipated to be towards the lower end of $3.15 to $3.35 [21][45] - Adjusted EBITDA is projected to be in the range of $356 to $368 million, reflecting increased anticipated negative foreign currency changes [21][46]

Core Viewpoint - Analysts forecast a significant decline in Edgewell Personal Care's quarterly earnings and revenues, indicating potential challenges for the company in the upcoming financial report [1]. Financial Performance Estimates - The expected earnings per share (EPS) for Edgewell Personal Care is $0.13, reflecting a year-over-year decline of 45.8% [1]. - Anticipated revenues are projected to be $480.06 million, which represents a decrease of 1.8% compared to the same quarter last year [1]. Earnings Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts predict 'Net Sales- Feminine Care' to reach $69.21 million, indicating a decline of 3.6% from the prior-year quarter [5]. - 'Net Sales- Wet Shave' is expected to be $295.40 million, reflecting a decrease of 2.1% year-over-year [5]. - The consensus for 'Net Sales- Sun and Skin Care' is projected at $115.41 million, suggesting no change compared to the previous year [5]. Market Performance - Over the past month, Edgewell Personal shares have returned -1.6%, contrasting with the Zacks S&P 500 composite's increase of +1.7% [5]. - With a Zacks Rank of 3 (Hold), Edgewell Personal is expected to perform in line with the overall market in the near future [5].

Financial Results Announcement - Edgewell Personal Care Company will report its financial results for the first quarter of fiscal year 2025 before the market opens on February 10, 2025 [1] - An investor conference call will be held on the same day at 8:00 a.m. Eastern Time to discuss the results [1] Access to Webcast - Interested parties can access a live webcast of the conference call through the company's website under the "Investors" and "News and Events" tabs [2] - A replay of the webcast will also be available for those unable to participate live [2] Company Overview - Edgewell is a leading pure-play consumer products company with a diversified portfolio of established brand names including Schick®, Wilkinson Sword®, Playtex®, and Banana Boat® [3] - The company operates in over 50 markets globally, including the U.S., Canada, Mexico, Germany, Japan, the U.K., and Australia, employing approximately 6,700 people worldwide [3]

Core Viewpoint - The article discusses the investment strategy of selecting stocks based on their price-to-earnings (P/E) ratios, emphasizing that both low and rising P/E stocks can yield strong returns [1][2]. Group 1: P/E Ratio Insights - A low P/E ratio suggests that a stock's market price does not reflect its earnings potential, indicating growth opportunities [1]. - Rising P/E ratios can also indicate strong demand for a stock as earnings expectations increase, leading to higher stock prices [3][4]. - Stocks can experience P/E ratio increases of over 100% from their breakout points, presenting significant investment opportunities if identified early [5]. Group 2: Stock Screening Criteria - The article outlines specific criteria for selecting stocks with increasing P/E ratios, including: - Current year EPS growth estimates should be greater than or equal to the previous year's actual growth [7]. - Price changes over shorter timeframes should exceed those over longer timeframes, indicating consistent price increases [7][8]. - A minimum 20% price increase from the breakout point is preferred, but should not exceed 100% to avoid potential reversals [8]. Group 3: Selected Stocks - The screening process narrowed down potential stocks to 53, with notable mentions including: - Constellation Brands (Zacks Rank 2) with an average four-quarter earnings surprise of 5.30% [9][10]. - Edgewell Personal Care (Zacks Rank 2) with an average four-quarter earnings surprise of 86.79% [10]. - Rent the Runway (Zacks Rank 2) with an average four-quarter earnings surprise of 9.20% [10]. - Medpace (Zacks Rank 2) with an average four-quarter earnings surprise of 14.68% [11]. - Canoo (Zacks Rank 2) with an average four-quarter earnings surprise of 14.76% [11].

Core Insights - The article emphasizes the importance of value investing and highlights Edgewell Personal Care (EPC) as a strong candidate for value investors due to its favorable financial metrics [2][4][7] Company Overview - Edgewell Personal Care (EPC) has a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating strong potential for value investors [4][7] - The stock has a P/E ratio of 9.86, significantly lower than the industry average of 21.05, suggesting it may be undervalued [4] - EPC's Forward P/E has fluctuated between 9.86 and 14.03 over the past year, with a median of 12.55, indicating a stable valuation range [4] Valuation Metrics - The P/S ratio for EPC is 0.69, compared to the industry average of 0.87, further supporting the notion of undervaluation [5] - EPC's P/CF ratio stands at 8.59, well below the industry average of 15.10, which highlights its strong cash flow outlook [6] - Over the past year, EPC's P/CF has ranged from 8.27 to 10.23, with a median of 9.40, indicating consistent cash flow performance [6] Investment Outlook - The combination of EPC's strong value metrics and positive earnings outlook positions it as an attractive investment opportunity for value-focused investors [7]

FORM 10-K or Unless the context requires otherwise, references to "Edgewell Personal Care Company," "Edgewell," "we," "us," "our" and "the Company" refer to Edgewell Personal Care Company, and its consolidated subsidiaries. Trademarks and Trade Names Industry and Market Data ____________________________________ For the fiscal year ended September 30, 2024 For the transition period from _______________ to _______________ Commission File Number 001-15401 6 Research Drive (203) 944-5500 Shelton, CT 06484 (Regi ...