UBS Remains Sidelined on Edgewell Personal Care Company (EPC) Following 4Q EPS Beat

November 11, 2016 9:09 AM EST
Get Alerts EPC Hot Sheet
Price: $77.97 --0%

Rating Summary:
    1 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 27 | Down: 20 | New: 14
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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)."

For an analyst ratings summary and ratings history on Edgewell Personal Care click here. For more ratings news on Edgewell Personal Care click here.

Shares of Edgewell Personal Care closed at $79.53 yesterday.



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