Energizer (NYSE: ENR) Q4 CY2024 Earnings Beat Expectations

Financial Highlights:

* Revenue: $731.7 million (2.1% YoY growth, 0.6% beat)
* Non-GAAP EPS: $0.67 per share (3.6% beat)
* Adjusted EBITDA: $140.7 million (19.2% margin, 5% beat)

Management Guidance:

* Adjusted EPS guidance reiterated: $3.55 at the midpoint
* EBITDA guidance: $635 million at the midpoint, exceeding analyst estimates of $624.9 million

Key Metrics:

* Organic Revenue Growth: 3.8% YoY (-7.4% in Q4 CY2023)
* Operating Margin: 4.1%, down from 9.7% in Q4 CY2023
* Free Cash Flow Margin: 10.5%, down from 21.3% in Q4 CY2023

Company Overview:

Energizer (NYSE: ENR) is a leading global battery manufacturer, known for its iconic Energizer Bunny mascot. Household products stocks like Energizer offer stability, as their products are essential for everyday life. However, eco-friendly consumer preferences pose both opportunities and challenges for companies in the industry.

Sales Growth:

Energizer's revenue has declined by 1.3% per year over the last three years, indicating weak demand. This quarter's modest 2.1% YoY revenue growth was slightly above expectations. Sell-side analysts project flat revenue over the next 12 months.

Organic Revenue Growth:

Energizer's organic sales have been largely flat over the last eight quarters. However, the latest quarter saw a notable 3.8% YoY growth, suggesting a regaining of momentum.

Earnings:

* EPS guidance for the next quarter missed Wall Street estimates.
* EPS guidance for the full year reiterated.
* Market reaction: Stock price declined 1.8% after earnings announcement.

Conclusion:

Energizer's Q4 results showed mixed signals. Revenue exceeded estimates, while EPS guidance disappointed. Long-term fundamentals and valuation should be considered before making investment decisions.