NYSE$ENR

Energizer Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Energizer's Q3 2023 results were announced, revealing a decrease in net sales and organic net sales, alongside gross margin improvements driven by Project Momentum initiatives.

Energizer Holdings, Inc. reported a decrease in net sales by 3.9% and organic net sales by 2.7% for the third quarter of fiscal year 2023. The company is increasing Project Momentum savings target to $130 to $150 million. They reaffirm fiscal year outlook for Adjusted earnings per share and Adjusted EBITDA at the low end of original range.

  • Net sales decreased 3.9%, with Organic Net sales down 2.7%.
  • Gross margin of 37.9%, and 38.8% on an adjusted basis, showing sequential improvement driven by Project Momentum.
  • Operating cash flow was $296.3 million, with free cash flow exceeding 12% of Net Sales year-to-date.
  • Debt pay down of $200 million occurred in the first three quarters.

Headline financials

Total Revenue

$699M

Previous: $728M-3.9%
EPS (adj)

$0.54

Previous: $0.77-29.9%
Adjusted Gross Margin

38.8%

No prior period
Gross Margin

37.9%

No prior period
Capital Expenditures

-$35.4M

Previous: -$65.8M+46.2%
Free Cash Flow

-$3.6M

Previous: -$13.4M+73.1%
Net Income

$31.8M

Previous: $52.4M-39.3%
Operating Income

$126M

Previous: $129M-2.7%
Gross Profit

$265M

Previous: $284M-6.7%
Cash & Equivalents

$202M

Previous: $200M+1.5%
Total Assets

$4.51B

Previous: $5.18B-13.1%
Stock-Based Comp

$4.3M

Previous: $3.5M+22.9%

Revenue & EPS history

Energizer · Revenue · Quarterly

$699M

Q3 2023-3.9%vs Q3 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Energizer · $188M total across 1 segment · Q3 2023

  • Auto Care
    $188M-4.2%

Forward guidance

Energizer is lowering its outlook for full year organic revenue from up low single digits to down low single digits. Even with lower revenues, they expect continued gross margin recovery, driven largely by Project Momentum savings, to support delivery of Adjusted EPS and Adjusted EBITDA at the low end of their previously communicated ranges.

Tailwinds

  • Continued gross margin recovery, driven largely by Project Momentum savings
  • Anticipate fourth fiscal quarter organic revenue will be roughly flat
  • Significant year over year gross margin improvement due to declining input costs
  • Continued benefit of Project Momentum savings
  • Project Momentum remains on track with approximately $32 million of savings delivered year-to-date and total project savings of $45 to $50 million anticipated for the full year.

Headwinds

  • Lower outlook for full year organic revenue from up low single digits to down low single digits.
  • Even with lower revenues, we expect continued gross margin recovery
  • Delivery of Adjusted EPS and Adjusted EBITDA at the low end of our previously communicated ranges.
  • Total one-time program cash costs are now projected to be roughly 75% of expected savings.
  • Total one-time cash project costs for the current year are now expected to be in the range of $45 to $50 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 Q3 2023

Historical avgQ3 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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