Energizer (ENR) Gains From Project Momentum & Debt Reduction

Core Insights - Energizer Holdings Inc. is committed to sustainable growth and profitability through strategic initiatives like Project Momentum, focusing on consumer engagement, market expansion, innovation, and effective debt reduction [1][10] Project Momentum - Project Momentum is central to Energizer's strategy, driving operational efficiencies and cost savings, with an adjusted gross margin increase of 270 basis points to 41.5% in Q3 fiscal 2024, contributing approximately $14 million in savings [2][3] - To date, Project Momentum has delivered nearly $120 million in savings, with a target of total savings between $180 million and $200 million over three years, while cash costs for achieving these savings are anticipated to be $150-$170 million [3] Financial Management - Energizer has reduced its leverage by over a full turn, paying down more than $430 million in debt over eight quarters, including $150 million in Q3 fiscal 2024, aiming for a net leverage ratio under 5 times by the fiscal year's end [4] - The company's disciplined financial management has improved its balance sheet and reduced financial risks, indicating long-term stability [4] Market Expansion and Innovation - Energizer plans to expand its market reach and drive growth through innovation, focusing on portable power, lighting, and auto care products to meet consumer demands and stay ahead of competitors [5] Segmental Performance - The Auto Care segment saw a revenue increase of 2.2% to $192.3 million year-over-year, while the Battery segment's profit increased by 6.2% to $129.4 million in Q3 fiscal 2024, demonstrating effective management of its diverse portfolio [6][7] - The company has achieved organic growth for four consecutive quarters, indicating a sustainable growth trajectory [6] Earnings Estimates - Analysts have revised the Zacks Consensus Estimate for Energizer's earnings per share upward, with current and next year estimates increased by 3 cents to $3.25 and by 10 cents to $3.51, reflecting year-over-year growth rates of 5.2% and 7.8% respectively [9]