NYSE$EPC

Edgewell Personal Care · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Edgewell reported a decrease in net sales but an increase in gross margin and cash from operating activities.

Edgewell Personal Care announced its fourth quarter and fiscal year 2020 results, showing a decrease in net sales compared to the prior year, but highlighted improvements in organic net sales trends and gross margin. The company also provided its financial outlook for fiscal year 2021, initiating net sales, organic sales, and adjusted EBITDA growth outlook.

  • Net sales decreased by 7.4% in Q4 2020 to $488.8 million, with organic net sales down 3.5%.
  • GAAP EPS for Q4 was $0.38, and adjusted EPS was $0.59.
  • Gross margin rate increased by 180 basis points to 45.4%.
  • The company ended the quarter with $365 million in cash on hand and access to an undrawn $425 million credit facility.

Headline financials

Total Revenue

$489M

Previous: $528M-7.4%
EPS (adj)

$0.59

Previous: $0.86-31.4%
Gross Margin

45.4%

No prior period
Free Cash Flow

$190M

No prior period
Net Income

$21M

Previous: $40.7M-48.4%
Operating Income

$24.2M

Previous: $64.6M-62.5%
Gross Profit

$222M

Previous: $230M-3.4%
Cash & Equivalents

$365M

Previous: $342M+6.8%
Total Assets

$3.54B

Previous: $3.42B+3.5%
Stock-Based Comp

$4.1M

Previous: $4M+2.5%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$489M

Q4 2020-7.4%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Edgewell · $419M total across 2 segments · Q4 2020

  • Wet Shave
    $327M
  • Sun and Skin Care
    $92.5M

Forward guidance

The Company is providing the following 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 90 basis-point benefit from currency translation
  • Organic sales to increase low-single digits
  • Adjusted operating profit margin expected to be consistent with fiscal 2020
  • Project Fuel Gross Savings of $50 to $60 million

Headwinds

  • Project Fuel one-time costs of $25 to $30 million
  • GAAP EPS in the range of $2.18 to $2.38
  • Includes: Project Fuel restructuring charges, IT enablement costs, acquisition and integration costs, the gain on sale of the Infant and Pet Care business and Sun Care Monograph 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 Q4 2020

Historical avgQ4 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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