Early holiday battery purchases impact earnings

  • Energizer Holdings’ 1Q net income down due to early holiday battery purchases
  • Company expects sales to remain flat or decrease this fiscal year
  • First-quarter adjusted earnings of 59 cents a share, beating analyst expectations
  • First-quarter sales fell 6.3% to $716.6 million
  • Organic sales fell 7.4% due to earlier holiday spending and flat pricing
  • Projected second-quarter adjusted earnings between 65 cents and 70 cents a share
  • Year-end projections for adjusted earnings between $3.10 and $3.30 a share
  • Cost savings from Project Momentum program increased to $160 million to $180 million

Energizer Holdings, the St. Louis maker of batteries and consumer products, experienced a decline in net income for the fiscal first quarter. This was attributed to consumers purchasing holiday-season batteries earlier than usual. The company also reiterated its expectations for sales to either remain flat or decrease during the current fiscal year. In the first quarter, Energizer posted adjusted earnings of 59 cents a share, surpassing the average analyst target of 57 cents a share. However, first-quarter sales fell 6.3% to $716.6 million, with organic sales dropping 7.4% due to the shift in holiday spending and flat pricing. Looking ahead, Energizer projected second-quarter adjusted earnings between 65 cents and 70 cents a share, with organic revenue expected to decline between 2% and 3% compared to the previous year. For the full fiscal year, the company reiterated its projections for adjusted earnings between $3.10 and $3.30 a share, and organic revenue to be flat or slightly lower than fiscal 2023. Additionally, Energizer increased its cost savings estimate from the Project Momentum program to between $160 million and $180 million, with a portion of those savings expected to be realized in the current fiscal year.

Public Companies: Energizer Holdings (N/A)
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Factuality Level: 7
Justification: The article provides specific financial information about Energizer Holdings’ fiscal first-quarter net income, earnings per share, and sales figures. It also includes projections for future earnings and cost savings. The information is supported by data from FactSet and the company’s own statements. However, the article does not provide any analysis or context for the financial results, and it does not include any perspectives or opinions from outside sources.

Noise Level: 3
Justification: The article provides specific financial information about Energizer Holdings’ fiscal first-quarter net income, earnings, and sales. It also includes projections for the second quarter and the year ending in September. The information is relevant and focused on the company’s financial performance, without diving into unrelated territories. However, the article lacks analysis, scientific rigor, and actionable insights. It mainly reports the numbers without providing a deeper understanding of the factors influencing the results or potential strategies for improvement. Therefore, the overall noise level is relatively low.

Financial Relevance: Yes
Financial Markets Impacted: Energizer Holdings

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Energizer Holdings, a company that manufactures batteries and consumer products. It discusses the company’s fiscal first-quarter net income, sales figures, and projections for the current fiscal year. There is no mention of any extreme events or their impact.

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