ENR - Energizer reports mixed Q1 earnings; reaffirms FY23 outlook

2023-05-08 06:52:33 ET

• Energizer press release ( NYSE: ENR ): Q2 Non-GAAP EPS of $0.64 beats by $0.12 .
• Revenue of $684.1M (-0.2% Y/Y) misses by $1.2M , with organic growth of 2.6%.
• Gross margin improvement of 220 basis points over prior year, 300 basis points on an adjusted basis.
• Operating cash flow of $210.2 million with Free cash flow exceeding 13% of Net Sales year-to-date.
• Reaffirms fiscal year outlook for Net sales, Adjusted earnings per share and Adjusted EBITDA.
• We are maintaining our previously communicated full year outlook, with organic revenue expected to increase low single digits, Adjusted EBITDA in the range of $585 million to $615 million, and Adjusted earnings per share in the range of $3.00 to $3.30 vs. consensus of $3.05.  We still expect low single digit declines for reported revenues due to the currency headwinds we experienced in the first half of the year of approximately $44 million. Currency also negatively impacted pre-tax earnings by approximately $20 million, or $0.22 per share, in the first half of the year. Based on current rates, we anticipate currency impacts on revenues and earnings to be neutral over the remainder of the year relative to fiscal 2022.

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