Energizer (NYSE:ENR) shares trade more than 6% higher on Monday after the battery maker reported stronger-than-expected results for its fiscal second quarter.
The company posted an adjusted profit per share of $0.64 on revenue of $684.1 million, which compares to the analyst consensus for EPS of $0.52 on revenue of $685.3M.
"We were pleased to deliver a strong second quarter, with organic growth and gross margin improvement across both of our Battery and Auto Care businesses," said Mark LaVigne, Chief Executive Officer.
"We improved adjusted gross margin by 300 basis points, grew adjusted earnings per share by 36%, and paid down over $100 million of debt in the quarter. While the macro environment remains uncertain, our strategies and investments in the business position us to deliver growth and value creation, and we remain on track to deliver on our outlook for the full year," LaVigne added.
The company continues to see adjusted EPS between $3.00 and $3.30, above the $3.07 consensus. As for top-line figures, Energizer expects low single-digit declines “due to the currency headwinds we experienced in the first half of the year of approximately $44 million.”
Goldman Sachs analysts added:
“The higher price growth more than offset higher cost inflation than we had expected to drive better gross margin which drove the earnings beat. Management reiterated its full year outlook. Expectations were low among investors we speak with given weak measured retail sales data in the quarter and we expect the stock to trade higher on the back of the beat and guidance reiteration,” the analysts said.