Energizer (US:ENR) ZACKSยท2025-05-07 12:15Core Insights - Energizer Holdings, Inc. reported second-quarter fiscal 2025 results with both net sales and earnings falling short of the Zacks Consensus Estimate, showing a year-over-year decline in both metrics [1][3][4] Financial Performance - Adjusted earnings were 67 cents per share, missing the estimate of 68 cents, and decreased by 6.9% from the previous year [4] - Net sales totaled $662.9 million, below the estimate of $669 million, and slightly decreased by 0.1% year-over-year, while organic net sales increased by 1.4% [4][5] - The battery segment saw a modest growth of 1.5% year-over-year, reaching $488 million, while the Auto Care segment experienced a decline of 4.1% to $174.9 million [6] Margin and Cost Analysis - Adjusted gross profit was $270.4 million, up 0.6% year-over-year, with an adjusted gross margin of 40.8%, an increase of 30 basis points [7] - Adjusted SG&A expenses rose by 9.3% year-over-year to $124.5 million, primarily due to investments in digital transformation and growth initiatives [8] - Adjusted EBITDA was $140.3 million, down 1.5% year-over-year, with an adjusted EBITDA margin of 21.2% [10] Financial Health - As of March 31, 2024, cash and cash equivalents stood at $139.3 million, with long-term debt of $3.15 billion and shareholders' equity of $133.9 million [11] - Operating cash flow for the fiscal second quarter was $64.2 million, and free cash flow was $8.6 million [11] Future Outlook - The company lowered its full-year guidance due to ongoing macroeconomic challenges, now expecting reported and organic net sales to range from flat to up 2% [3][13] - Adjusted EBITDA is projected to be between $610 million and $630 million, and adjusted earnings per share are expected to be in the range of $3.30 to $3.50 [14] - For the third quarter, reported and organic net sales are anticipated to be flat to down 2%, with adjusted EPS projected between 55 cents and 65 cents [15]