Why Is Energizer (ENR) Down 7.8% Since Last Earnings Report?

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$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$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$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].