NYSE$ENR

Energizer Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Energizer reported a net sales increase of 3.2% driven by organic growth, and launched Project Momentum to restore margins.

Energizer Holdings, Inc. announced its fourth fiscal quarter and full fiscal year results, with net sales up 3.2% compared to the prior year, driven by organic growth of 7.4%, primarily due to pricing actions. The company also announced Project Momentum, a profit recovery program, with targeted annualized savings of $80 to $100 million over the next two fiscal years.

  • Net Sales for the fourth quarter up 3.2% to prior year, driven by organic growth of 7.4%, primarily due to pricing actions.
  • Free cash flow in the fourth quarter at 12% of Net Sales and net debt decreased by over $100 million.
  • Company expects to deliver low single digit organic revenue growth, Adjusted EBITDA in the range of $585 to $615 million and Adjusted earnings per share in the range of $3.00 to $3.30 for fiscal 2023.
  • Announces Project Momentum, a profit recovery program, with targeted annualized savings of $80 to $100 million over the next two fiscal years.

Headline financials

Total Revenue

$790M

Previous: $766M+3.2%
EPS (adj)

$0.82

Previous: $0.79+3.8%
Capital Expenditures

$12M

Previous: $22.2M-45.9%
Free Cash Flow

$95.3M

Previous: $121M-20.9%
Net Income

-$363M

Previous: $83.2M-536.2%
Operating Income

-$475M

Previous: $57M-933.5%
Gross Profit

$286M

Previous: $280M+2.1%
Cash & Equivalents

$205M

Previous: $239M-14.1%
Total Assets

$4.57B

Previous: $5.01B-8.7%
Stock-Based Comp

$3.3M

Previous: -$3.1M+206.5%

Revenue & EPS history

Energizer · Revenue · Quarterly

$790M

Q4 2022+3.2%vs Q4 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Energizer · $151M total across 1 segment · Q4 2022

  • Auto Care
    $151M-5.3%

Forward guidance

The Company expects organic revenue to increase low single digits. Adjusted EBITDA is expected to be in the range of $585 million to $615 million, and Adjusted earnings per share is expected to be in the range of $3.00 to $3.30 for fiscal 2023.

Tailwinds

  • We expect organic revenue to increase low single digits, as continued pricing actions are partially offset by category volume declines across both the battery and auto care segments.
  • Adjusted EBITDA is expected to be in the range of $585 million to $615 million, up approximately 10% on a currency-neutral basis at the mid-point.
  • Adjusted earnings per share is expected to be in the range of $3.00 to $3.30, up approximately 12% on a currency-neutral basis at the mid-point.
  • Project Momentum has targeted annualized pre-tax savings of approximately $80 million to $100 million, with approximately $30 million to $40 million of those savings to be recognized in fiscal 2023.
  • The restructuring component is estimated to generate annualized pre-tax savings of approximately $65 million to $80 million of the total savings.

Headwinds

  • We also expect low single digit declines for reported revenues when considering negative currency headwinds of approximately $90 million, based on September 2022 rates.
  • We anticipate negative currency headwinds on earnings of approximately $27 million and $0.30 per share based on September 2022 rates.
  • category volume declines across both the battery and auto care segments.
  • anticipated one-time pre-tax costs of $40 million to $50 million over the next two years related to restructuring component.
  • inflation on our input costs

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 Q4 2022

Historical avgQ4 2022

-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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