Energizer Holdings (ENR) Tops Q3 EPS by 14c, Offers Q4 Outlook

Energizer Holdings (NYSE: ENR) reported Q3 EPS of $0.64, $0.14 better than the analyst estimate of $0.50. Revenue for the quarter came in at $374.3 million versus the consensus estimate of $371.13 million.

Financial Outlook Assumptions for Fiscal 2015 Fourth Quarter

The Company is providing the below assumptions related to its financial outlook for the fourth quarter of fiscal 2015. All comparisons are with the fourth quarter ended September 30, 2014 (which is on a carve out basis), unless otherwise stated.

• Impact of movement in foreign currencies
  • Net sales are expected to be unfavorably impacted by $25 to $30 million.
  • Pre-tax earnings (net of the hedge impact) are estimated to be reduced by $12 to $15 million.
• International go-to-market changes
  • Net sales are expected to decline in the mid-single digits.
  • Segment earnings impact is expected to be minimal as we anticipate overhead reductions will likely offset a significant portion of the gross profit decline.
• Change in results in Venezuela as a result of the Company's previously announced deconsolidation
  • Net sales will be reduced $5.6 million.
  • Segment profit will decline $2.7 million.
• Organic revenue is expected to be down mid- to high-single digits
  • The Company will experience an unfavorable comparison with the prior year quarter, which included a +4% growth rate, driven primarily by the timing of earlier holiday deliveries and temporary prior year shelf gains.
• Gross Margin rate is expected to decline by up to 300 basis points driven primarily by currency, changes in Venezuela (as a result of the deconsolidation) and the international go-to-market changes.

In addition, the Company expects to incur incremental charges related to the spin transaction during the fourth quarter of fiscal 2015 and through the end of fiscal year 2016.

• Pre-tax spin costs are expected to be in the range of $15 to $25 million through the end of fiscal year 2016. A significant portion of these costs are expected to be incurred in the fourth quarter of fiscal year 2015. In addition, tax related spin costs in foreign jurisdictions realized in the fourth quarter are expected to be approximately $10 million.

For earnings history and earnings-related data on Energizer Holdings (ENR) click here.

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