Energizer (ENR) Q3 Earnings & Sales Top Estimates, Fall Y/Y
Zacks Investment Research | Aug 03, 2016 09:53PM ET
Energizer Holdings, Inc. (NYSE:ENR) reported third-quarter fiscal 2016 results wherein both adjusted earnings of 32 cents per share and revenues of $361 million came in way ahead of the Zacks Consensus Estimate of 29 cents and $355.6 million, respectively.
On a year-over-year basis, adjusted earnings fell 50% while revenues declined 3.6% mainly due to forex fluctuations and International go-to-market changes. Shares were down 2.5% yesterday.
Organic revenues were up 1.2% mainly on the back of distribution and space gains in North America, partly offset by reduced retail inventory levels and intensifying competition in some Asia Pacific markets.
Alkaline batteries revenues fell 2.3% year over year to $228.6 million while Other batteries and lighting products revenues declined 5.7% year over year to $132.4 million.
In North America, the company recorded revenues of $188.8 million, up 1.7%. In Latin America, revenues amounted to $25.9 million, down 6.8% and in Europe, the Middle East and Africa (EMEA) region, revenues were $77.2 million, down 6.2%. Asia Pacific also recorded a revenue decline of 11.9% year over year to $69.9 million.
Gross margin in the third quarter contracted 300 basis points (bps) to 42.6% primarily due to forex fluctuations. Selling, general and administrative expenses (excluding spin & restructuring costs) as a percentage of net sales was 22.4% compared with 18.6% reported in the year-ago quarter.
On Jul 1, 2015, Energizer completed the spin off its Household Products business. Following the spin-off, two independent, publicly traded companies were created, namely Energizer Holdings, Inc. and Edgewell Personal Care Company. Energizer incurred spin-off and spin restructuring related charges of $2.8 million in the quarter.
As of Jun 30, 2016, Energizer had cash and cash equivalents of $567.1 million compared with $502.1 million as of Sep 30, 2015. Long-term debt was $982.4 million compared with $984.3 million as of Sep 30, 2015. For the nine months ended Jun 30, 2016, cash flow from operations came in at $141.9 million and free cash flow amounted to $125.6 million.
The company also repurchased 0.6 million shares worth $21.8 million in the quarter and paid $15.5 as dividends.
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