Energizer(ENR) reported earnings on Tue 6 Aug 19 (b/o)

** charts after earnings **

 

Energizer misses by $0.09, misses on revs; guides FY19 EPS in-line, lowers rev guidance

Reports Q3 (Jun) earnings of $0.37 per share, excluding non-recurring items, $0.09 worse than the S&P Capital IQ Consensus of $0.46; revenues rose 64.8% year/year to $647.2 mln vs the $673.5 mln S&P Capital IQ Consensus.

Co issues guidance for FY19, sees EPS of $2.90-3.00, excluding non-recurring items, vs. $2.93 S&P Capital IQ Consensus; sees FY19 revs of $2.48-2.50 bln (from $2.52-2.57 bln) vs. $2.53 bln S&P Capital IQ Consensus.

• Co's outlook for gross margin rate improves the mid-point of their range by 70 basis points to be in the range of 42.5% to 42.9%.
• In addition to confirming its outlook for adjusted earnings per share from continuing operations, the company is also confirming its outlook for adjusted EBITDA to be between $540 to $560 million and adjusted free cash flow to be between $220 to $250 million.

FY2020 outlook:

• The combined battery and lighting business, which represents approximately eighty percent of co's total business, is stable and growing and they would expect their November outlook related to this business for fiscal year 2020 to be in line with the prior outlook. However, based upon the revised auto care outlook for fiscal year 2019 and current trends in that business, they will be revising their outlook for auto care sales to be in the range of $510 to $525 million. Firm also expects the marginal impact of these lower sales to flow through to their adjusted EBITDA, adjusted free cash flow and adjusted earnings per share, although offset in part by approximately $10 to $12 million of increased synergy benefits. As they are currently in the midst of their annual planning process, co will provide full updated guidance for fiscal year 2020 during their fourth quarter earnings release.