Energizer Shares Drop 18% as Quarterly Earnings Miss Expectations

Core Viewpoint - Energizer Holdings Inc. experienced a significant drop in share price due to fourth-quarter adjusted earnings falling short of analyst expectations, despite slightly exceeding revenue forecasts [1]. Financial Performance - The company reported adjusted earnings of $1.05 per share, which was 10.3% below the analyst consensus of $1.17 [2]. - Revenue for the quarter totaled $832.8 million, marginally exceeding expectations of $830.45 million [2]. - Organic net sales decreased by 2.2% compared to the prior-year period, attributed to weaker consumer demand, particularly in North America [2]. Margin and Cost Analysis - Adjusted gross margin contracted to 38.5%, a decline of 370 basis points from the same quarter a year earlier [3]. - The decline in gross margin was linked to increased input costs due to production inefficiencies, higher warehousing and distribution expenses, and rising tariff-related costs [3]. Future Guidance - For fiscal 2026, the company projected flat to slightly positive organic net sales growth and guided for adjusted earnings per share between $3.30 and $3.60 [4]. - Energizer indicated that the first quarter would be challenging, forecasting a high single-digit decline in organic net sales and adjusted EPS of $0.20 to $0.30 [4].