NYSE$EPC

Edgewell Personal Care · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Net sales increased, driven by strong demand and market share gains, but profitability was impacted by inflationary pressures and supply chain disruptions.

Edgewell Personal Care announced its second quarter fiscal 2022 results, with net sales increasing by 5.5% and organic net sales increasing by 2.1%. GAAP EPS was $0.43, while adjusted EPS was $0.50. The company repurchased $51 million of its common stock and paid $8.2 million of dividends. The company is increasing organic net sales outlook to reflect continued strong demand and incremental pricing, while lowering adjusted EPS and adjusted EBITDA estimates to reflect increased inflationary pressure.

  • Net sales increased by 5.5%, or 2.1% on an organic basis.
  • GAAP EPS was $0.43, compared to $0.26 in the prior year period.
  • Adjusted EPS was $0.50, compared to $0.70 in the prior year period.
  • The Company repurchased $51 million of its common stock and paid $8.2 million of dividends.

Headline financials

Total Revenue

$548M

Previous: $519M+5.5%
EPS (adj)

$0.50

Previous: $0.70-28.6%
Gross Margin

42.0%

Previous: 46.6%-9.9%
Free Cash Flow

$23.2M

Previous: $14.4M+61.1%
Net Income

$23.2M

Previous: $14.4M+61.1%
Operating Income

$41.7M

Previous: $62.9M-33.7%
Gross Profit

$230M

Previous: $242M-4.8%
Cash & Equivalents

$188M

Previous: $282M-33.3%
Total Assets

$3.79B

Previous: $3.54B+7.2%
Stock-Based Comp

$6.7M

Previous: $6.7M+0.0%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$548M

Q2 2022+5.5%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Edgewell · $488M total across 2 segments · Q2 2022

  • Wet Shave
    $305M+4.2%
  • Sun and Skin Care
    $183M+14.9%

Forward guidance

The Company is updating its previously provided outlook assumptions for fiscal 2022 to reflect the impact of fiscal second quarter results and projected increases in cost inflation.

Tailwinds

  • Reported net sales expected to increase mid-single digits
  • Includes an estimated 400-basis point increase from the acquisition of Billie, net of Edgewell sales to Billie
  • Organic sales expected to increase approximately 400-basis points (previously low-single digits)
  • Adjusted effective tax rate expected to be in the range of 21% to 22% (previously 22% to 23%)
  • Free cash flow expected to be above 100% of GAAP net earnings

Headwinds

  • Updated to include a 200-basis point negative impact from currency translation (previously 160-basis point negative impact)
  • GAAP EPS expected to be in the range of $1.93 to $2.21 (previously $2.23 to $2.51)
  • Includes: Restructuring charges,* acquisition and integration costs, Sun Care reformulation costs, and value added tax settlement costs
  • Adjusted EPS expected to be in the range of $2.38 to $2.66 (previously $2.74 to $3.02)
  • Adjusted EBITDA expected to be in the range of $330 to $345 million (previously $357 to $377)

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 2022

Historical avgQ2 2022

+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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