Why EVEREADY Parent Energizer Holdings' Shares Are Soaring Today

Energizer Holdings, Inc. (NYSE: ENR) fourth-quarter FY23 sales increased by 2.6% year-on-year to $811.10 million, beating the consensus of $794.58 million.

The household and specialty batteries manufacturer reported an adjusted EPS of $1.20, beating the analyst consensus of $1.13.

Adjusted gross margin was 40%, up 380 basis points from the prior year quarter and 120 basis points from the third fiscal quarter of 2023.

The gross margin increase for the quarter was driven by Project Momentum savings of approximately $19 million, a decline in product costs as freight and other costs have stabilized and declined slightly from the prior year, and the continued benefit of pricing initiatives and favorable currency impacts.

Adjusted EBITDA of $185.4 million in Q4 was higher than $146 million in the year-ago period. 

At quarter end, the company held cash and equivalents worth $223.3 million.

The company reduced net leverage by 0.6 times in fiscal 2023, driven by $225 million of debt paydown and over 5% Adjusted EBITDA growth.

Outlook: Energizer Holdings sees FY24 adjusted EPS of $3.10-$3.30 versus the $3.36 estimate.

The company expects Adjusted EBITDA in the range of $600 million-$620 million.

For FY24, the company expects organic revenue to be flat to down low-single digits.

Energizer Holdings sees Q1 adjusted EPS Of $0.50-$0.60 versus the $0.86 estimate.

The company expects Q1 organic revenue to be down 6%-8%, impacted by projected category trends and the shift in timing of holiday orders in the fourth quarter of fiscal 2023.

"As we look ahead, we expect macroeconomic uncertainty to persist in 2024," said Mark LaVigne, Chief Executive Officer.

Price Action: ENR shares are trading higher by 8.37% at $36.44 on the last check Tuesday.

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