The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Energizer Holdings missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly, and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins increased, net margins increased.
Energizer Holdings logged revenue of $1.20 billion. The eight analysts polled by S&P Capital IQ expected a top line of $1.24 billion. Sales were 1.8% higher than the prior-year quarter's $1.18 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $2.05. The 12 earnings estimates compiled by S&P Capital IQ anticipated $1.91 per share on the same basis. GAAP EPS of $2.15 for Q1 were 39% higher than the prior-year quarter's $1.55 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 47.1%, 30 basis points worse than the prior-year quarter. Operating margin was 19.1%, 170 basis points better than the prior-year quarter. Net margin was 12.0%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $1.22.
Next year's average estimate for revenue is $4.73 billion. The average EPS estimate is $6.19.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 307 members out of 332 rating the stock outperform, and 25 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give Energizer Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energizer Holdings is outperform, with an average price target of $87.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Energizer Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.