NYSE$EPC

Edgewell Personal Care · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Edgewell's financial performance was impacted by COVID-19, but benefited from strategic investments and innovation, resulting in a mixed second quarter.

Edgewell Personal Care reported a slight decrease in net sales, but experienced growth in the Wet Shave segment. The company is maintaining its financial outlook for fiscal year 2021, focusing on organic sales growth and strategic investments.

  • Net sales decreased by 0.7% to $519.3 million compared to the prior year period.
  • GAAP diluted earnings per share were $0.26, down from $0.36 in the prior year period.
  • Adjusted EPS were $0.70, compared to $0.92 in the prior year period.
  • The company ended the quarter with $282 million in cash and access to an undrawn $425 million credit facility.

Headline financials

Total Revenue

$519M

Previous: $523M-0.7%
EPS (adj)

$0.70

Previous: $0.92-23.9%
Gross Margin

46.6%

Previous: 46.5%+0.2%
Free Cash Flow

$14.4M

Previous: $19.5M-26.2%
Net Income

$14.4M

Previous: $19.5M-26.2%
Operating Income

$62.9M

Previous: $72.8M-13.6%
Gross Profit

$242M

Previous: $243M-0.5%
Cash & Equivalents

$282M

Previous: $309M-8.6%
Total Assets

$3.54B

Previous: $3.31B+6.9%
Stock-Based Comp

$6.7M

Previous: $5.3M+26.4%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$519M

Q2 2021-0.7%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Edgewell · $452M total across 2 segments · Q2 2021

  • Wet Shave
    $293M+4.3%
  • Sun and Skin Care
    $160M+1.3%

Forward guidance

Edgewell is maintaining its previously provided outlook assumptions for fiscal 2021.

Tailwinds

  • Reported net sales to increase mid-single digits
  • Includes: 160 basis-point net benefit from the Cremo acquisition and the Infant and Pet Care divestiture and a 160 basis-point benefit from currency translation
  • Organic sales to increase low-single digits
  • Adjusted operating profit margin to be consistent with fiscal 2020
  • Project Fuel Gross Savings of $50 to $60 million

Headwinds

  • Project Fuel costs of $25 to $30 million
  • GAAP EPS in the range of $1.80 to $2.00 (Previously $2.18 to $2.38)
  • Includes: Project Fuel restructuring charges, cost of early retirement of long-term debt, IT enablement costs, acquisition and integration costs
  • Adjusted EPS in the range of $2.62 to $2.82
  • Adjusted EBITDA in the range of $345 to $360 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 Q2 2021

Historical avgQ2 2021

+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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