NYSE$ENR

Energizer Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Energizer reported strong operating results driven by Project Momentum initiatives, with free cash flow of nearly 20% of net sales and debt pay down of over $50 million in the first quarter and over $50 million subsequent to quarter-end.

Energizer Holdings, Inc. announced results for the first fiscal quarter ended December 31, 2022. The company reported Net sales of $765.1 million compared to $846.3 million in the prior year period. Operating cash flow was $161.0 million, and free cash flow was $152.2 million, or approximately 20% of Net sales.

  • Operating cash flow of $161.0 million and Free cash flow of nearly 20% of Net Sales driven by strong operating results and Project Momentum initiatives.
  • Debt pay down of over $50 million in the first quarter and over $50 million subsequent to quarter-end.
  • Reaffirms fiscal year outlook for Net sales, Adjusted earnings per share and Adjusted EBITDA.
  • Categories remain strong and company believes brands continue to be chosen by consumers.

Headline financials

Total Revenue

$765M

Previous: $846M-9.6%
EPS (adj)

$0.72

Previous: $1.03-30.1%
Gross Margin

39.0%

No prior period
Capital Expenditures

-$9.5M

Previous: $24.4M-138.9%
Free Cash Flow

$39.5M

Previous: -$79M+150.0%
Net Income

$49M

Previous: $60M-18.3%
Operating Income

$154M

Previous: $76.5M+101.7%
Gross Profit

$298M

Previous: $312M-4.3%
Cash & Equivalents

$280M

Previous: $221M+26.7%
Total Assets

$4.58B

Previous: $5.11B-10.4%
Stock-Based Comp

$4.6M

Previous: $1.3M+253.8%

Revenue & EPS history

Energizer · Revenue · Quarterly

$765M

Q1 2023-9.6%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Energizer · $93.5M total across 1 segment · Q1 2023

  • Auto Care
    $93.5M-11.9%

Forward guidance

The Company is maintaining its previously communicated full year outlook, with organic revenue expected to increase low single digits, Adjusted EBITDA in the range of $585 million to $615 million, and Adjusted earnings per share in the range of $3.00 to $3.30.

Tailwinds

  • Organic revenue expected to increase low single digits
  • Adjusted EBITDA in the range of $585 million to $615 million
  • Adjusted earnings per share in the range of $3.00 to $3.30
  • Project Momentum remains on track with approximately $7 million of savings delivered in the current quarter
  • Total project savings of $30 million to $40 million anticipated for the full year

Headwinds

  • Expect low single digit declines for reported revenues
  • Currency headwinds of approximately $50 million
  • Anticipate negative currency headwinds on pre-tax earnings of approximately $20 million
  • Anticipate negative currency headwinds on earnings of approximately $0.23 per share
  • Total one-time project expenses for the current year are expected to be in the range of $25 million to $35 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.9%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-2.1%

Avg return

30 days after

42%

18 / 43 earnings

Positive

+19.9%

Q1 2016

Best reaction

-18.6%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-8.2%-2.5%-2.4%
Q1 2026-0.1%-4.1%-17.4%
Q4 2025-18.6%-23.4%-15.2%
Q2 2025-7.8%-16.7%-14.8%
Q1 2025-3.3%-5.4%-10.8%
Q4 2024+10.3%+12.2%+4.2%
Q3 2024+2.5%+2.3%+8.0%
Q2 2024-0.5%+2.1%-2.6%
Q1 2024+2.6%+1.0%-9.0%
Q4 2023+0.1%-4.3%-4.3%
Q3 2023-3.0%-3.6%-2.2%
Q2 2023+8.8%+7.1%+2.0%
Q1 2023-5.1%-4.7%-6.2%
Q4 2022+8.1%+8.3%+14.7%
Q3 2022+0.8%+5.8%-6.9%
Q2 2022+3.6%+11.0%-0.8%
Q1 2022+1.8%-0.2%-10.7%
Q4 2021+3.6%+0.5%+2.2%
Q3 2021-2.5%-0.3%-3.1%
Q2 2021-1.3%-5.0%-12.2%
Q1 2021-1.6%-1.2%-3.3%
Q4 2020-10.5%-10.7%-10.2%
Q3 2020-10.5%-11.8%-13.6%
Q2 2020+8.2%+9.7%+27.3%
Q1 2020+2.8%+5.9%-7.7%
Q4 2019+15.7%+15.2%+19.4%
Q3 2019-13.6%-6.2%+1.5%
Q2 2019-8.9%-8.4%-8.4%
Q1 2019-1.3%-2.9%-7.1%
Q4 2018-10.7%-16.9%-11.4%
Q3 2018-2.3%+1.2%-0.1%
Q2 2018-5.0%-3.3%+6.6%
Q1 2018+9.3%+4.4%+4.6%
Q4 2017+1.8%+5.7%+14.8%
Q3 2017-11.1%-12.6%-5.6%
Q2 2017-3.4%-4.3%-2.9%
Q1 2017+5.5%+2.9%+10.0%
Q4 2016-4.0%-5.1%-4.1%
Q3 2016-2.8%-1.5%-2.1%
Q2 2016-0.5%
Q1 2016+19.9%
Q4 2015-9.7%
Q3 2015+2.8%
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013

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