NYSE$ENR

Energizer Holdings Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Delivered nearly 10% Net sales growth and nearly 50% Adjusted earnings per share growth behind strong auto care results, solid execution across business, and the benefits of synergies and reduced interest expense.

Energizer Holdings, Inc. announced results for the third fiscal quarter ended June 30, 2021. Net sales reached $721.8 million, up 9.7% with organic growth of 5.8%. Earnings per share were $0.24, and Adjusted earnings per share were $0.74, up 48% compared to the prior year. The company is increasing its full year outlook for Net sales growth to 8% to 9% and reaffirming its outlook for Adjusted earnings per share of $3.30 to $3.50 and Adjusted EBITDA of $620 to $640 million. The company intends to enter into a $75 million accelerated share repurchase program in the fourth fiscal quarter.

  • Strong top-line auto care growth globally resulted in reported Net sales of $721.8 million, up 9.7% with organic growth of 5.8%.
  • Earnings per share of $0.24, inclusive of a $0.27 per share loss on extinguishment from debt refinancing, and Adjusted earnings per share of $0.74 for the third quarter, up 48% compared to the prior year.
  • Increasing full year outlook for Net sales growth to 8% to 9% and reaffirming outlook for Adjusted earnings per share of $3.30 to $3.50 and Adjusted EBITDA of $620 to $640 million.
  • Intends to enter into a $75 million accelerated share repurchase program in the fourth fiscal quarter.

Headline financials

Total Revenue

$722M

Previous: $658M+9.7%
EPS (adj)

$0.74

Previous: $0.50+48.0%
Capital Expenditures

$42.7M

No prior period
Free Cash Flow

$20.8M

Previous: $29.8M-30.2%
Net Income

$20.8M

Previous: $29.8M-30.2%
Operating Income

$132M

Previous: $106M+25.0%
Gross Profit

$273M

Previous: $263M+3.8%
Cash & Equivalents

$208M

Previous: $306M-32.0%
Total Assets

$4.98B

Previous: $5.13B-2.9%
Stock-Based Comp

$1.3M

Previous: $5.3M-75.5%

Revenue & EPS history

Energizer · Revenue · Quarterly

$722M

Q3 2021+9.7%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Energizer · $689M total across 2 segments · Q3 2021

  • Batteries & Lights
    $483M+2.6%
  • Auto Care
    $206M+27.9%

Forward guidance

The company is updating its full year fiscal 2021 outlook for Net sales growth, Adjusted gross margin rate, and Adjusted free cash flow. They are maintaining their previously communicated full year outlook ranges for Adjusted earnings per share and Adjusted EBITDA.

Tailwinds

  • Net sales growth is now expected to be between 8% to 9%, attributed to distribution gains, elevated demand and favorable currency impacts.
  • Additional productivity management efforts, synergies and the impacts of favorable currency are expected to help offset some of the increased operational costs.
  • Adjusted earnings per share of $3.30 to $3.50 is maintained.
  • Adjusted EBITDA of $620 to $640 million is maintained.
  • Believe the steps we are taking to make these investments are prudent given the potential disruptions which continue to persist in the global supply network.

Headwinds

  • Adjusted gross margin rate is expected to decrease 80 to 110 basis points on a year over year basis as inflationary cost pressures continue to increase.
  • Adjusted free cash flow is now expected to exceed $225 million. This is a result of our investment in inventory to support the upcoming peak battery season and to ensure we maintain high service levels for our customers.
  • Investment in inventory to support the upcoming peak battery season
  • Potential disruptions which continue to persist in the global supply network.
  • Inventory balances to normalize in 2022.

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 Q3 2021

Historical avgQ3 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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