NYSE$ENR

Energizer Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Energizer's financial performance improved in the second quarter of fiscal year 2021, with strong top-line growth and increased adjusted earnings per share.

Energizer Holdings, Inc. reported net sales of $685.1 million, a 16.7% increase, with organic growth of 12.7%. Adjusted diluted net earnings per share increased by 108% to $0.77. The company has increased its full year outlook to 5% to 7% net sales growth and $3.30 to $3.50 for adjusted earnings per share.

  • Net sales increased by 16.7% to $685.1 million, with organic growth of 12.7%.
  • Adjusted diluted net earnings per share rose by 108% to $0.77.
  • The company finalized the refinancing of its existing debt, contributing to a reduction in interest expense of $8.1 million.
  • Full year outlook increased to 5% to 7% Net sales growth, $3.30 to $3.50 for Adjusted earnings per share and $620 to $640 million for Adjusted EBITDA.

Headline financials

Total Revenue

$685M

Previous: $587M+16.7%
EPS (adj)

$0.77

Previous: $0.37+108.1%
Adjusted Gross Margin

40.5%

No prior period
Free Cash Flow

-$6.7M

Previous: -$118M+94.3%
Net Income

-$10.2M

Previous: -$118M+91.3%
Operating Income

-$13.7M

Previous: $82.5M-116.6%
Gross Profit

$271M

Previous: $236M+14.8%
Cash & Equivalents

$261M

Previous: $278M-6.1%
Total Assets

$4.94B

Previous: $4.75B+3.9%
Stock-Based Comp

$5.4M

Previous: $8.7M-37.9%

Revenue & EPS history

Energizer · Revenue · Quarterly

$685M

Q2 2021+16.7%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Energizer · $652M total across 2 segments · Q2 2021

  • Batteries & Lights
    $513M+19.9%
  • Auto Care
    $139M+6.7%

Forward guidance

Energizer updated its full year fiscal 2021 outlook.

Tailwinds

  • Net sales growth is now expected to be between 5% to 7%, attributed to distribution gains, elevated battery demand and favorable currency impacts.
  • Adjusted gross margin rate is expected to be essentially flat on a year-over-year basis as synergies and the impacts of favorable currency are expected to offset inflationary cost pressures and mix shifts. This full-year rate is consistent with our previously provided outlook.
  • Adjusted earnings per share is now expected to be in the range of $3.30 to $3.50.
  • Adjusted EBITDA is now expected to be in the range of $620 to $640 million.
  • The company expects benefits from synergies and favorable currency impacts.

Headwinds

  • Adjusted free cash flow is now expected to be at the low end of our previously provided range of $325 to $350 million due to working capital requirements, primarily related to inventory, as we look to rebuild safety stock and meet increased demand.
  • The company began lapping the COVID elevated demand levels for batteries late in the second quarter.
  • In the third and fourth quarter, the company anticipates year-over-year declines as they approach more normalized levels for both categories.
  • Fiscal 2020 included COVID-related costs of $36 million, including interest expense, which were heavily weighted to the back half of the year.
  • Inflationary cost pressures and mix shifts are expected.

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 Q2 2021

Historical avgQ2 2021

-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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