Upcoming AWS Coverage on Spectrum Brands Holdings Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 22, 2017 / Active Wall St. announces its post-earnings coverage on Energizer Holdings, Inc. (NYSE: ENR). The Company posted its second quarter of fiscal 2017 financial results on May 03, 2017. The battery and personal care products Company surpassed earnings expectations and raised earnings guidance for the year. Register with us now for your free membership at:
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One of Energizer Holdings' competitors within the Personal Products space, Spectrum Brands Holdings, Inc. (NYSE: SPB), reported on May 02, 2017, its results for Q2 FY17 ended April 2, 2017. AWS will be initiating a research report on Spectrum Brands in the coming days.
Today, AWS is promoting its earnings coverage on ENR; touching on SPB. Get our free coverage by signing up to:
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Earnings Reviewed
Energizer's net sales were $359.0 million for the quarter ended March 31, 2017, an increase of 7.5% compared to net sales of $334 million for Q2 FY16. The Company's net sales have increased 8.8%, due to the impact of the auto care acquisition; however, unfavorable currency impacted sales by 1.3%. Energizer's revenue numbers fell short of analysts' consensus for of $366.5 million.
Energizer's total segment profit in Q2 FY17 37.1% to $93.1 million. Excluding the unfavorable movement in foreign currencies of $2.1 million and the favorable impact of the acquisition of $10.2 million, organic segment profit increased 25.3% on a y-o-y basis. For the reported quarter, the Company's gross margin percentage was 46.8%, up 440 basis points. Excluding onetime impacts, gross margin increased by 390 basis points, driven by cost reductions realized from continued productivity improvements as well as the benefit of productivity investments recorded in the prior year, material and purchased product cost favorability and improved pricing and product mix.
Energizer's spin restructuring related income was $2.5 million in Q2 FY17, reflecting the change in estimates of spin accruals on contract termination costs. Gain on sale of real estate was $15.2 million related to the sale of office building space in Asia. The Company's earnings before income tax was $59.3 million compared to $21 million in the year earlier same quarter.
For Q2 FY17, Energizer's net earnings were $46.9 million, or $0.75 per diluted share, compared to $16.4 million, or $0.26 per diluted share, in Q2 FY16. The Company's adjusted net earnings for the reported quarter were $31.4 million, or $0.50 per diluted share, compared to adjusted net earnings of $18.5 million, or $0.30 per diluted share, in the year ago same period. Energizer's earnings numbers surpassed Wall Street's expectations of $0.34 per share.
Cash Matters
Energizer's net cash from operating activities on a year to date basis was $124.3 million and free cash flow on a year to date basis was $135.1 million, or 14.7% of net sales. Energizer repurchased approximately 192,000 shares of common stock on a year to date basis for $8.6 million.
On May 01, 2017, Energizer announced that its Board of Directors has declared a dividend for Q3 FY17 of $0.275 per share of Common Stock, payable on June 14, 2017, to all shareholders of record as of the close of business on May 22, 2017.
Outlook
Energizer increased its previously communicated adjusted EPS outlook for the full fiscal year 2017 to $2.75 to $2.85. The Company is forecasting net sales to increase to mid-single digits, with organic net sales expected to grow low-single digits and the incremental impact of the auto care acquisition expected to increase net sales by 5% to 6%, also unfavorable movements in foreign currencies are expected to reduce net sales by 1.5% to 2.5%, based upon recent currency rates.
For FY17, Energizer's gross margin rates are projected to improve by 100 to 125 basis points. Earnings before income taxes (EBIT) is expected to be negatively impacted by the movement in foreign currencies by $15 million to $20 million, net of hedge impact, based upon recent currency rates. Capital spending is expected to be in the range of $30 million to $35 million. The Company is estimating net cash from operating activities to exceed $200 million and free cash flow is now expected to exceed $190 million.
Stock Performance
Energizer Holdings' share price finished last Friday's trading session at $52.61, slightly advancing 0.98%. A total volume of 559.71 thousand shares exchanged hands, which was higher than the 3 months average volume of 477.16 thousand shares. The stock has surged 21.29% and 24.41% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have rallied 18.54%. The stock is trading at a PE ratio of 17.55 and has a dividend yield of 2.09%. At Friday's closing price, the stock's net capitalization stands at $3.22 billion.
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SOURCE: Active Wall Street