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Edgewell Personal Care Company's Financial Performance and Strategic Moves
Financial Modeling Prep· 2026-02-10 01:00
Core Insights - Edgewell Personal Care Company reported a Q1 fiscal 2026 GAAP EPS of -$1.41, impacted by the divestiture of its Feminine Care business, while adjusted EPS from continuing operations was -$0.16, outperforming the Zacks Consensus Estimate of -$0.18, resulting in an earnings surprise of 11.11% [1] - Revenue for the period was $422.8 million on a continuing operations basis, a 1.9% year-over-year increase, but below the Zacks Consensus Estimate of approximately $481.3 million, representing a 12.15% miss [2] - The company completed the divestiture of its Feminine Care business to Essity for $340 million, which is seen as a strategic move to focus on core areas and strengthen its balance sheet [3] Financial Performance - On a consolidated basis, net sales were $486.8 million, reflecting a 1.8% increase from the prior year, while organic net sales decreased by 0.5% on a continuing operations basis [2] - The company has exceeded consensus revenue estimates only once in the past four quarters, indicating ongoing challenges in meeting market expectations [2] - Financial ratios post-divestiture show a negative trailing P/E ratio of approximately -23.96, a P/S ratio of 0.42, a debt-to-equity ratio of 1.05, and a current ratio of 2.12, suggesting solid short-term financial health [5] Strategic Developments - The divestiture of the Feminine Care business is viewed as a pivotal milestone in the company's transformation, positioning Edgewell as a more focused and agile organization [3] - The company operates in a competitive consumer products industry, facing rivals such as Procter & Gamble and Unilever, and its Q1 performance modestly exceeded internal expectations for organic net sales, adjusted EPS, and adjusted EBITDA [4]