NYSE$EPC

Edgewell Personal Care · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Edgewell's Q1 2020 results were announced, featuring flat organic net sales growth and a 49% increase in adjusted earnings per share.

Edgewell Personal Care reported net sales of $454.0 million, a decrease of 0.7% compared to the prior year period, with organic net sales consistent with the prior year. GAAP EPS was $0.41, compared to a loss of $0.01 in the prior year, and adjusted EPS was $0.55, compared to $0.37 in the prior year. The company completed the sale of its Infant and Pet Care business for $122.5 million and terminated its merger agreement with Harry's, Inc.

  • Net sales decreased by 0.7% to $454.0 million, with flat organic net sales growth.
  • GAAP EPS increased to $0.41 from a loss of $0.01 in the prior year, and adjusted EPS increased to $0.55 from $0.37 in the prior year.
  • The sale of the Infant and Pet Care business was completed for $122.5 million.
  • The merger agreement with Harry's, Inc. was terminated.

Headline financials

Total Revenue

$454M

Previous: $457M-0.7%
EPS (adj)

$0.55

Previous: $0.37+48.6%
Gross Margin

42.5%

Previous: 42.3%+0.5%
Free Cash Flow

$22.4M

Previous: -$400K+5700.0%
Net Income

$22.4M

Previous: -$400K+5700.0%
Operating Income

$72.7M

Previous: $73.2M-0.7%
Gross Profit

$193M

Previous: $194M-0.2%
Cash & Equivalents

$252M

Previous: $240M+5.0%
Total Assets

$3.3B

Previous: $3.88B-14.9%
Stock-Based Comp

$4.9M

Previous: $4.9M+0.0%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$454M

Q1 2020-0.7%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Edgewell · $352M total across 2 segments · Q1 2020

  • Wet Shave
    $277M-3.7%
  • Sun and Skin Care
    $75.1M+12.6%

Forward guidance

The Company has updated its financial outlook for fiscal 2020 solely to reflect the impact of the Infant and Pet Care divestiture and an adjustment to the Company's estimated effective tax rate for the full year. The financial outlook provided today does not include potential one-time costs associated with the Harry's transaction.

Tailwinds

  • Organic net sales growth is expected to be in the range of down 1% to flat compared to the prior year, unchanged from the previous outlook.
  • Adjusted EPS is now in the range of $2.95 to $3.15
  • The adjusted effective tax rate for fiscal 2020 is estimated to be in the range of 20.0% to 22.0%.
  • Project Fuel is expected to generate approximately $70 million in incremental gross savings.
  • The Company anticipates that fiscal 2020 free cash flow will be above 100% of GAAP net earnings.

Headwinds

  • Total net sales to be in the range of down 5% to down 4% compared to the prior year.
  • The outlook for GAAP EPS is now estimated to be in the range of $2.40 to $2.60
  • Adjusted EPS reflecting an estimated $0.15 reduction for the impact of the Infant and Pet Care divestiture, including associated stranded costs, partly offset by a lower estimated full year adjusted effective tax rate.
  • Adjusted EBITDA to be in the range of $350 to $360 million
  • Project Fuel related restructuring charges are expected to be approximately $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 2020

Historical avgQ1 2020

+0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.8%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+20.1%

Q1 2020

Best reaction

-17.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.2%-13.9%-13.1%
Q1 2026-4.6%+5.5%-4.0%
Q4 2025-2.7%-10.8%-8.0%
Q2 2025-10.2%-4.3%-9.9%
Q1 2025-9.5%-5.8%-2.5%
Q4 2024-0.5%-2.8%+1.1%
Q3 2024-0.2%-0.7%+5.8%
Q2 2024+4.4%+7.9%+3.4%
Q1 2024+5.6%+6.6%+2.8%
Q4 2023-2.5%+1.6%-0.7%
Q3 2023-2.8%-2.1%-2.1%
Q2 2023+1.9%+2.6%-2.0%
Q1 2023+4.7%+5.7%-3.8%
Q4 2022+0.9%+2.8%+3.5%
Q3 2022+2.6%+4.0%-3.9%
Q2 2022-11.8%-10.6%-8.8%
Q1 2022-11.0%-15.1%-17.0%
Q4 2021+13.9%+14.6%+17.2%
Q3 2021+8.0%+8.8%+0.6%
Q2 2021+9.1%+10.4%+13.2%
Q1 2021+0.6%-2.7%+1.5%
Q4 2020+9.2%+13.2%+12.1%
Q3 2020-7.8%-5.0%-1.0%
Q2 2020+11.1%+2.7%+22.6%
Q1 2020+20.1%+10.4%-2.1%
Q4 2019-11.4%-15.5%-13.2%
Q3 2019+7.5%+2.2%+2.8%
Q2 2019-17.0%-15.1%-22.8%
Q1 2019+6.6%+10.0%+9.1%
Q4 2018-9.6%-6.1%-11.6%
Q3 2018+2.8%+2.4%-1.3%
Q2 2018-1.4%+2.2%+5.1%
Q1 2018-4.5%-4.4%+0.8%
Q4 2017-6.5%-5.1%-2.8%
Q3 2017+2.5%+3.3%+2.2%
Q2 2017+5.4%+3.6%+3.5%
Q1 2017-1.4%-1.7%-2.4%
Q4 2016+8.2%+8.7%+1.7%
Q3 2016-5.4%-2.9%-5.9%
Q2 2016-3.7%
Q1 2016-0.2%
Q4 2015-3.0%
Q3 2015+0.4%
Q2 2015+0.9%
Q1 2015-1.6%
Q4 2014-0.0%
Q3 2014-0.3%
Q2 2014+3.6%
Q1 2014-0.6%
Q4 2013+1.4%
Q3 2013-2.5%
Q2 2013+3.8%
Q1 2013+2.8%
Q4 2012+0.0%
Q3 2012-13.5%
Q2 2012-2.2%
Q1 2012+2.3%
Q4 2011-1.7%
Q3 2011+1.0%
Q2 2011+0.5%
Q1 2010+0.3%
Q1 2011+0.1%
Q2 2010+1.5%
Q4 2008+1.5%
Q4 2010+1.5%
Q3 2009+4.3%
Q3 2010+4.3%
Q4 2009+4.3%

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