NYSE$EPC

Edgewell Personal Care · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Delivered strong organic net sales and earnings per share growth, expanded gross margin and generated substantial cash.

Edgewell Personal Care announced strong Q3 2023 results, with net sales increasing by 4.2% to $650.0 million and organic net sales increasing by 4.5%. GAAP EPS grew by 77% and Adjusted EPS grew by 14%. The company is on track to deliver organic net sales growth slightly above the mid-point, adjusted EPS at the high-end, and adjusted EBITDA slightly above the high-end of the previously provided ranges.

  • Net sales were $650.0 million, an increase of 4.2% compared to the prior year quarter, or 4.5% on an organic basis.
  • GAAP Diluted EPS was $1.01 for the third fiscal quarter compared to $0.57 in the prior year quarter.
  • Adjusted EPS was $0.98, inclusive of a $0.09 unfavorable impact from currency movements, compared to $0.86 in the prior year quarter.
  • Ended the third fiscal quarter with $207.4 million in cash on hand.

Headline financials

Total Revenue

$650M

Previous: $624M+4.2%
EPS (adj)

$0.98

Previous: $0.86+14.0%
Gross Margin

43.0%

Previous: 38.6%+11.4%
Adjusted EBITDA

$109M

Previous: $97.1M+12.4%
Free Cash Flow

$52.5M

Previous: $30.5M+72.1%
Net Income

$52.5M

Previous: $30.5M+72.1%
Operating Income

$85.6M

Previous: $49.9M+71.5%
Gross Profit

$280M

Previous: $241M+16.3%
Cash & Equivalents

$207M

Previous: $182M+14.0%
Total Assets

$3.77B

Previous: $3.72B+1.2%
Stock-Based Comp

$6.5M

Previous: $6.2M+4.8%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$650M

Q3 2023+4.2%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Edgewell · $569M total across 2 segments · Q3 2023

  • Wet Shave
    $324M-0.7%
  • Sun and Skin Care
    $245M+13.3%

Forward guidance

The Company is providing the following updated outlook assumptions for fiscal 2023:

Tailwinds

  • Reported net sales are expected to increase slightly above the mid-point of the the range of 2% to 4%.
  • Organic net sales are now expected to increase slightly above the mid-point of the range of 3% to 5%
  • GAAP EPS is now expected to be in the range of $1.95 to $2.15
  • Adjusted EPS is now expected to be at the high end of the range of $2.30 to $2.50
  • Adjusted EBITDA is now expected to be slightly above the high end of the range of $320 to $335 million

Headwinds

  • Includes an estimated 60-basis point inorganic benefit in net sales from the acquisition of Billie, net of prior year Edgewell sales to Billie and an estimated 120-basis point (previously 115-basis point) negative impact from currency movements
  • Includes: Restructuring charges*, acquisition and integration costs, Sun Care reformulation costs, Canadian Pension wind-up costs, and favorable resolution of legal matters
  • Includes an estimated $0.38 EPS (previously $0.43) unfavorable impact from foreign currency movements
  • Gross margin is now expected to be flat to the prior year (previously 30-basis point increase)
  • Includes an estimated $26 million (previously $29 million) unfavorable impact from foreign currency changes

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

+0.2%

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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