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Why Is Energizer (ENR) Up 12.8% Since Last Earnings Report?

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It has been about a month since the last earnings report for Energizer Holdings (ENR - Free Report) . Shares have added about 12.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Energizer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Energizer Q4 Earnings Miss Estimates, Organic Sales Decline Y/Y

Energizer reported fourth-quarter fiscal 2025 results, wherein the net sales surpassed the Zacks Consensus Estimate and earnings missed the same. Also, the top line increased and the bottom line decreased year over year. Also, organic sales declined year over year.

Energizer’s adjusted earnings of $1.05 per share missed the Zacks Consensus Estimate of $1.12. Also, the bottom line decreased 13.9% from the year-ago quarter’s reported figure.

The company reported net sales of $832.8 million, which surpassed the Zacks Consensus Estimate of $831 million and increased 3.4% from the year-ago quarter’s reported number. This was driven by $42.8 million in acquisition-related sales, partially offset by a 2.2% decline in organic net sales.

This organic net sales decline was primarily due to a 2.9% decrease in volumes caused by softer consumer demand, mainly in North America. This was partially mitigated by stronger e-commerce and international performance in Batteries & Lights, as well as new innovation and broader distribution in Auto Care. These volume pressures were partly offset by a 0.7% increase in pricing driven by innovation and tariffs across both segments.

Energizer's Q4 Sales Insights by Segments

Net sales of Energizer's Batteries & Lights segment increased 3.9% year over year to $677.2 million. We note that segmental profit decreased 15.4% to $151.8 million. Meanwhile, net sales in the Auto Care segment increased 1% to $155.6 million from the year-ago period. Segmental profit increased sharply by 29% to $25.8 million.

Energizer's Margin & Cost Details

In the fiscal fourth quarter, adjusted gross profit was $320.3 million, down 5.7% year over year. Energizer’s adjusted gross margin contracted 370 basis points to 38.5%. The decline in adjusted gross margin was due to higher input costs stemming from production inefficiencies during the network rebalancing, along with increased warehousing, distribution and tariff expenses, and the lower-margin APS business. 

These pressures were partly offset by the fiscal 2025 production tax credit of $7.7 million, roughly $6 million in savings from Project Momentum and benefits from price increases implemented to counter tariff impacts. 

Adjusted SG&A expenses increased 4.2% year over year to $128.2 million. The year-over-year increase was mainly driven by $7.3 million of additional SG&A from the APS business, higher investment in digital transformation and increased recycling fees. These were partially offset by roughly $4 million in savings from Project Momentum.

Adjusted SG&A costs, as a rate of net sales, were 15.4%, up slightly from 15.3% in the prior-year quarter. Advertising and Promotion expenses were 4.1% of net sales in the fiscal fourth quarter compared with 4.6% in the same quarter last year, reflecting a decrease of 50 basis points or $3.3 million.

Adjusted EBITDA was $171.2 million, down 8.6% year over year, whereas the adjusted EBITDA margin decreased 260 basis points to 20.6% from 23.2% in the prior-year quarter.

Energizer’s Financial Health Snapshot

As of Sept. 30, 2025, Energizer’s cash and cash equivalents were $236.2 million, with long-term debt of $3.41 billion and shareholders' equity of $169.9 million. The operating cash flow as of the fiscal fourth quarter was $147.1 million and free cash flow was $63.2 million. During the fiscal fourth quarter, Energizer repurchased 1.2 million shares of common stock for $27.1 million, or $22.49 per share. Dividend payments during the quarter totaled approximately $21.3 million, or 30 cents per common share.

What to Expect From Energizer in FY26?

For fiscal 2026, the company expects organic net sales to be flat to slightly higher across both Batteries, Lights and Auto Care. Gross margin is projected to decline modestly, as tariff impacts are largely offset by previously implemented pricing actions, production credits and productivity initiatives, with slight dilution from the full-year inclusion of the APS business. 

As a result, adjusted earnings per share are expected to range from $3.30 to $3.60 and adjusted EBITDA is projected between $580 million and $610 million. In fiscal 2025, adjusted earnings per share were $3.52 and adjusted EBITDA was $623.6 million. Earnings cadence will be weighted toward the later part of the year, with the fiscal first quarter reflecting a difficult sales comparison and temporary cost pressures. After the fiscal first quarter, the company expects to deliver double-digit adjusted EPS growth for the remainder of the year. For the fiscal first quarter, organic net sales are expected to decline a high single-digit percentage, with adjusted EPS in the range of 20 cents to 30 cents.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -63.3% due to these changes.

VGM Scores

Currently, Energizer has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Energizer has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Energizer belongs to the Zacks Consumer Products - Staples industry. Another stock from the same industry, National Vision (EYE - Free Report) , has gained 14.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

National Vision reported revenues of $487.33 million in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $0.13 for the same period compares with $0.12 a year ago.

For the current quarter, National Vision is expected to post earnings of $0.05 per share, indicating a change of +225% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

National Vision has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.


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