ST. LOUIS - Energizer Holdings, Inc. (NYSE: NYSE:ENR) reported a modest uptick in its stock by 0.8% following the announcement of its second-quarter earnings, which surpassed analyst expectations.
The company recorded adjusted earnings per share (EPS) of $0.72, outperforming the consensus estimate of $0.67. Revenue for the quarter stood at $684.1 million, also exceeding the forecasted $665.46 million.
The company's net sales saw a 3.0% decline compared to the same period last year, with organic net sales experiencing a 2.7% decrease. Despite the drop in sales, Energizer's Auto Care segment demonstrated resilience with a 2.3% increase in net sales, driven by a 2.4% rise in organic growth.
Additionally, the company achieved a 120 basis point improvement in gross margin over the previous year, and a 260 basis point increase on an adjusted basis.
Energizer's CEO, Mark LaVigne, commented on the results, "This quarter marks another solid performance for Energizer. Steadily improving category trends combined with benefits from Project Momentum drove adjusted gross margin expansion and healthy adjusted earnings per share growth."
Looking ahead, the company provided guidance for the third quarter of 2024, with expectations of an EPS range between $0.62 and $0.68, which falls below the analyst consensus of $0.72. For the full fiscal year 2024, Energizer anticipates an adjusted EPS range of $3.10 to $3.30, with the midpoint slightly below the consensus estimate of $3.21.
Energizer's financial outlook reaffirms its expectations for net sales, adjusted earnings per share, and adjusted EBITDA for the fiscal year. The company remains on track with its Project Momentum savings, aiming for a range of $160 to $180 million over the program's lifespan.
The projected savings for fiscal year 2024 are expected to be between $55 to $65 million, with one-time cash costs to achieve these savings ranging from $60 to $70 million.
The company's performance and forward-looking guidance reflect its strategic initiatives and operational efficiencies, which continue to drive margin improvements and debt reduction, positioning Energizer for organic growth in the latter half of the year.
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