NYSE$EPC

Edgewell Personal Care · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Net sales decreased slightly, but adjusted EPS increased significantly due to robust gross margin expansion.

Edgewell Personal Care reported a slight decrease in net sales but a significant increase in adjusted EPS for Q3 2024. The company benefited from robust gross margin accretion and strong performance in its Right-to-Win portfolio, particularly in Sun Care and Grooming. The company is updating its full year outlook, anticipating sales growth of about 1% and increasing projections for adjusted EPS and EBITDA.

  • Net sales were $647.8 million, a decrease of 0.3% compared to the prior year quarter.
  • Organic net sales increased 0.6%.
  • Adjusted EPS were $1.22, compared to $0.99 in the prior year quarter.
  • The Board of Directors declared a cash dividend of $0.15 per common share on August 6, 2024 for the third quarter.

Headline financials

Total Revenue

$648M

Previous: $650M-0.3%
EPS

$0.98

Previous: $0.98+0.0%
Gross Margin

44.3%

Previous: 43.0%+3.0%
Adjusted Gross Margin

44.7%

No prior period
A&P Expense

$76.6M

No prior period
A&P % of Sales

11.8%

No prior period
SG&A Expense

$110M

No prior period
SG&A % of Sales

17.0%

No prior period
Adjusted SG&A % of Sales

16.2%

No prior period
Operating Margin

12.8%

No prior period
Adjusted Operating Income

$94.8M

No prior period
Adj. Operating Margin

14.6%

No prior period
Adjusted EBITDA

$117M

Previous: $109M+7.4%
Capital Expenditures

-$12.6M

No prior period
Free Cash Flow

$49M

Previous: $52.5M-6.7%
Net Income

$49M

Previous: $52.5M-6.7%
Operating Income

$82.7M

Previous: $85.6M-3.4%
Gross Profit

$287M

Previous: $280M+2.6%
Total Assets

$3.71B

Previous: $3.77B-1.5%
R&D Expense

$14.6M

No prior period
Stock-Based Comp

$7.1M

Previous: $6.5M+9.2%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$648M

Q3 2024-0.3%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Edgewell · $461M total across 2 segments · Q4 2023

  • Wet Shave
    $323M-0.7%
  • Sun and Skin Care
    $138M+2.8%

Forward guidance

The Company is providing the following outlook assumptions for fiscal 2024: Organic net sales are now expected to increase approximately 1%, Adjusted EPS is now expected to be approximately $3.00, Adjusted EBITDA is now expected to be approximately $356 million.

Tailwinds

  • Organic net sales are now expected to increase approximately 1%
  • Adjusted EPS is now expected to be approximately $3.00
  • Adjusted gross margin is now expected to increase approximately 140-basis points to the prior year
  • This EPS outlook reflects the impact of share repurchases of approximately $50 million
  • Adjusted EBITDA is now expected to be approximately $356 million

Headwinds

  • Currency is now expected to negatively impact reported net sales by 35-basis points
  • Includes an estimated $0.12 per share unfavorable impact from foreign currency movements
  • Includes an estimated $8 million unfavorable impact from foreign currency changes
  • Other Expense, net is expected to be approximately zero
  • Capital expenditures expected to be approximately 2.5% of net sales

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 2024

Historical avgQ3 2024

+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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