We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Energizer Holdings (ENR) Q3 Earnings Beat, Revenues Miss
Read MoreHide Full Article
Energizer Holdings, Inc. (ENR - Free Report) reported mixed third-quarter fiscal 2017 results wherein adjusted earnings of 43 cents per share comfortably beat the Zacks Consensus Estimate of 37 cents and grew 34.4% year over year. However, revenues of $372 million missed the consensus mark of $391.5 million but grew 3% year over year. The year-over-year growth was driven by sales from auto care acquisition.
However, organic revenues decreased 2.6% year over year.
Quarterly Details
Batteries revenues fell 3.7% year over year to $325.8 million while revenues from Other segment more than doubled to $46.2 million.
In Americas, the company recorded revenues of $228.6 million, up 6.9% from last year’s quarter. Revenues from Europe, the Middle East and Africa region were $76.6 million, down 0.8%, and the Asia Pacific region recorded revenue decrease of 4.4% year over year to $66.8 million.
Gross margin decreased 10 basis points (bps), to 42.5%. Selling, general and administrative expenses as a percentage of net sales were 22.4% compared with 24.1% reported in the year-ago quarter.
Energizer Holdings, Inc. Price, Consensus and EPS Surprise
As of Jun 30, 2017, Energizer had cash and cash equivalents of $404.4 million compared with $287.3 million as of Sep 30, 2016. Long-term debt was $979.2 million compared with $981.7 million as of Sep 30, 2016.
For the nine months ended Jun 30, 2017, cash flow from operations came in at $145.6 million and free cash flow amounted to $155.3 million.
As of Jun 30, 2017, the company had repurchased shares worth $8.6 million. However, no shares were repurchased during the quarter.
Dividend payments in the quarter were approximately $17 million and approximately $52 million on a year-to-date basis.
Guidance
For fiscal 2017, Energizer now expects adjusted earnings per share in a band of $2.85–$2.90, up from $2.75–$2.85 projected earlier, which includes an anticipated 5.2% incremental contribution from the recently acquired auto care business.
Organic revenues are expected to be up in low-single digits. Free cash flow is expected to exceed $190 million and gross margin is expected to increase 125–150 bps up from earlier projection of 100–125 bps. Capex is expected in a range of $30–$35 million.
Stiff competition from regional players remains a major concern for Energizer. Moreover, forex volatility will continue to be a headwind for the company, reducing net sales by 1.5–2%.
Zacks Rank & Stock Price Movement
Currently, Energizer carries a Zacks Rank #2 (Buy).
In the last year, shares of Energizer have fallen 12.5% as against the industry’s decline of 5.4%.
In the trailing four quarters, Cutera, Identiv and United States Cellular delivered average positive earnings surprises of 231.25%, 51.41% and 37.84%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Energizer Holdings (ENR) Q3 Earnings Beat, Revenues Miss
Energizer Holdings, Inc. (ENR - Free Report) reported mixed third-quarter fiscal 2017 results wherein adjusted earnings of 43 cents per share comfortably beat the Zacks Consensus Estimate of 37 cents and grew 34.4% year over year. However, revenues of $372 million missed the consensus mark of $391.5 million but grew 3% year over year. The year-over-year growth was driven by sales from auto care acquisition.
However, organic revenues decreased 2.6% year over year.
Quarterly Details
Batteries revenues fell 3.7% year over year to $325.8 million while revenues from Other segment more than doubled to $46.2 million.
In Americas, the company recorded revenues of $228.6 million, up 6.9% from last year’s quarter. Revenues from Europe, the Middle East and Africa region were $76.6 million, down 0.8%, and the Asia Pacific region recorded revenue decrease of 4.4% year over year to $66.8 million.
Gross margin decreased 10 basis points (bps), to 42.5%. Selling, general and administrative expenses as a percentage of net sales were 22.4% compared with 24.1% reported in the year-ago quarter.
Energizer Holdings, Inc. Price, Consensus and EPS Surprise
Energizer Holdings, Inc. Price, Consensus and EPS Surprise | Energizer Holdings, Inc. Quote
As of Jun 30, 2017, Energizer had cash and cash equivalents of $404.4 million compared with $287.3 million as of Sep 30, 2016. Long-term debt was $979.2 million compared with $981.7 million as of Sep 30, 2016.
For the nine months ended Jun 30, 2017, cash flow from operations came in at $145.6 million and free cash flow amounted to $155.3 million.
As of Jun 30, 2017, the company had repurchased shares worth $8.6 million. However, no shares were repurchased during the quarter.
Dividend payments in the quarter were approximately $17 million and approximately $52 million on a year-to-date basis.
Guidance
For fiscal 2017, Energizer now expects adjusted earnings per share in a band of $2.85–$2.90, up from $2.75–$2.85 projected earlier, which includes an anticipated 5.2% incremental contribution from the recently acquired auto care business.
Organic revenues are expected to be up in low-single digits. Free cash flow is expected to exceed $190 million and gross margin is expected to increase 125–150 bps up from earlier projection of 100–125 bps. Capex is expected in a range of $30–$35 million.
Stiff competition from regional players remains a major concern for Energizer. Moreover, forex volatility will continue to be a headwind for the company, reducing net sales by 1.5–2%.
Zacks Rank & Stock Price Movement
Currently, Energizer carries a Zacks Rank #2 (Buy).
In the last year, shares of Energizer have fallen 12.5% as against the industry’s decline of 5.4%.
Other Stocks to Consider
Better-ranked stocks in the broader tech space are Cutera, Inc. (CUTR - Free Report) , Identiv, Inc. (INVE - Free Report) and United States Cellular Corp. (USM - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) Stocks here.
In the trailing four quarters, Cutera, Identiv and United States Cellular delivered average positive earnings surprises of 231.25%, 51.41% and 37.84%, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>