Battery and lighting company Energizer (NYSE:ENR) reported Q1 FY2024 results topping analysts' expectations, with revenue down 6.3% year on year to $716.6 million. It made a non-GAAP profit of $0.59 per share, down from its profit of $0.72 per share in the same quarter last year.
Is now the time to buy Energizer? Find out by reading the original article on StockStory.
Energizer (ENR) Q1 FY2024 Highlights:
- Revenue: $716.6 million vs analyst estimates of $710.8 million (0.8% beat)
- EPS (non-GAAP): $0.59 vs analyst estimates of $0.57 (4.1% beat)
- EPS (non-GAAP) Guidance for Q2 2024 is $0.68 at the midpoint, below analyst estimates of $0.70
- EPS (non-GAAP) Guidance for full year 2024 is $3.20 at the midpoint, in line with analyst estimates
- Free Cash Flow of $152.6 million, up 96.9% from the previous quarter
- Gross Margin (GAAP): 37.3%, down from 39% in the same quarter last year
- Organic Revenue was down 7.4% year on year (miss)
- Market Capitalization: $2.23 billion
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.
Household ProductsHousehold products companies engage in the manufacturing, distribution, and sale of goods that maintain and enhance the home environment. This includes cleaning supplies, home improvement tools, kitchenware, small appliances, and home decor items. Companies within this sector must focus on product quality, innovation, and cost efficiency to remain competitive.
Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options.
Sales GrowthEnergizer carries some recognizable brands and products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the other hand, Energizer can still achieve high growth rates because its revenue base is not yet monstrous.
As you can see below, the company's revenue was flat over the last three years. This is poor for a consumer staples business.
This quarter, Energizer reported a rather uninspiring 6.3% year-on-year revenue decline to $716.6 million in revenue, in line with Wall Street's estimates. Looking ahead, Wall Street expects revenue to remain flat over the next 12 months.
Key Takeaways from Energizer's Q1 Results While organic revenue missed, it was encouraging to see Energizer narrowly top analysts' revenue expectations this quarter. We were also happy its EPS narrowly outperformed Wall Street's estimates. While next quarter's EPS outlook was below expectations, full year EPS guidance was in line., Overall, the results were mixed but fine, with no major surprises. The stock is flat after reporting and currently trades at $31.07 per share.