UBS Remains Sidelined on Edgewell Personal Care Company (EPC) Following 4Q EPS Beat
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
- Jefferies Raises Price Target on Zumiez, Inc. (ZUMZ) to $23 Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesUBS, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!