Energizer Holdings (NYSE: ENR) reported Q2 EPS of $0.50, $0.16 better than the analyst estimate of $0.34. Revenue for the quarter came in at $359 million versus the consensus estimate of $366.67 million.

GUIDANCE:

Energizer Holdings sees FY2017 EPS of $2.75-$2.85, versus the consensus of $2.77.

Financial Outlook for Fiscal Year 2017

The company increased its previously communicated adjusted EPS outlook for the full fiscal year to $2.75 to $2.85. This range is inclusive of approximately $0.15 to $0.20 from the recently acquired auto care business.

The company is providing the following assumptions related to the full year financial outlook for fiscal year 2017. All comparisons are with the fiscal year ended September 30, 2016 unless otherwise stated.

• Net sales are expected to be up mid-single digits:
  • Organic net sales are expected to be up low-single digits;
  • The incremental impact of the auto care acquisition is expected to increase net sales by 5% to 6%; and
  • Unfavorable movements in foreign currencies are expected to reduce net sales by 1.5% to 2.5%, based upon recent currency rates.
• Gross margin rates, excluding unusuals, are now expected to improve by 100 to 125 basis points.
• SG&A as a percent of net sales, excluding integration costs and certain other items, is expected to improve 50 to 100 basis points and be in the range of 19 to 20 percent.
• Earnings before income taxes (EBIT) is expected to be negatively impacted by the movement in foreign currencies by $15 to $20 million, net of hedge impact, based upon recent currency rates.
• Income tax rate, excluding integration costs and certain other items, is now expected to be in the range of 28.5 to 29.5 percent.
• Capital spending is expected to be in the range of $30 to $35 million.
• Net Cash from operating activities is expected to exceed $200 million and Free Cash Flow is now expected to exceed $190 million.
• Acquisition and integration costs are expected to be in the range of $5 to $10 million.

Highlights:

• Reported net sales increased 7.5% in the second fiscal quarter versus the prior year due to incremental net sales from the auto care acquisition of 8.8%, partially offset by unfavorable currency of 1.3%
• Diluted EPS was $0.75 in the second fiscal quarter compared to $0.26 in the prior year second quarter, and Adjusted Diluted EPS was $0.50 compared to $0.30 in the prior year second quarter, up 67%
• Raises full year adjusted EPS outlook to $2.75 to $2.85

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