UBS Remains Sidelined on Edgewell Personal Care Company (EPC) Following 4Q EPS Beat
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UBS reiterated a Neutral rating on Edgewell Personal Care Company (NYSE: EPC) price target of $86.00 (from $85.00) following the company's 4Q earnings report. EPC delivered EPS of $1.06, compared to the consensus of $0.96. Management expects adjusted EPS of $3.80-$4.00 in 2017.
Analyst Stephen Powers commented, "Amidst an increasingly challenging HPC landscape, EPC delivered optically solid EPS of $1.06 against UBSe/cons. of $1.02/$0.96 (although we’d note that its tax rate was ~5 points below our estimates of ~27% (or a 7c benefit to EPS) that came alongside strong organic growth of +9.2% (vs. UBSe of +3.1%). Leveraging broad-based sales strength (Wet shave +7.4% organic, Sun and Skin Care +18.2% organic, and Feminine Care +11.4% organic), EPC drove gross margin expansion of +295 bps (vs. UBSe of +155 bps) as it reduced trade spend and benefited from lower material costs. Looking ahead to FY17, EPC expects adjusted EPS of $3.80-$4.00, 100%+ FCF productivity (on GAAP earnings), 50+ bps of operating margin expansion, and +LSD sales growth (including a +40 bps contribution from the Bulldog acquisition)."
Shares of Edgewell Personal Care closed at $79.53 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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