NEW YORK - Energizer Holdings Inc (NYSE:ENR), widely recognized for its Energizer Bunny mascot, has reported a revenue of $811.1 million for the fourth quarter of fiscal year 2023, a 2.6% increase from the previous year, surpassing Wall Street's expectations. The company announced today that its Q4 revenue exceeded analyst estimates by 2.1%. Despite this achievement, Energizer saw its GAAP profit per share decline to $0.27 from $0.82 year-on-year.
The company also witnessed an improvement in its financial health, with free cash flow growing by 11.7% from the last quarter to $77.5 million, showcasing a robust cash position. Additionally, Energizer's gross margin rose significantly to 37.9%, up from 35.5% in the same quarter last year.
Mark LaVigne, CEO of Energizer, expressed contentment with the company's performance, indicating a strong conclusion to the fiscal year. He highlighted the growth in organic revenue, which saw a 2% increase year-on-year.
Despite these positive results and a substantial cash balance of $223.3 million, Energizer provided guidance for Q1 2024 and the full fiscal year that did not meet analyst predictions. The estimated EPS (non-GAAP) is projected at $0.55 for Q1 and $3.20 for the full year at the midpoint.
Analysts have forecasted that Energizer's revenue may plateau over the coming 12 months after a 2% rise in organic sales this quarter. Even with a market capitalization of $2.40 billion and a three-year annualized revenue growth rate of only 2.5%, Energizer's financials suggest it has sufficient resources to implement a high-growth business strategy.
Following today's announcement of Q4 results and despite surpassing revenue forecasts, Energizer's stock experienced a 2% decrease due to its lower-than-anticipated future earnings guidance. The stock is currently trading at $33 per share.
InvestingPro Insights
Delving into the InvestingPro real-time data, Energizer Holdings Inc. (ENR) has a market capitalization of $2.4 billion and a negative P/E ratio of -10.02. As of Q3 2023, the company's revenue stands at $2.939 billion, a decline of -2.87% over the last twelve months. However, the company's gross profit margin is a healthy 37.79%, and the P/E ratio adjusted for the last twelve months as of Q3 2023 is 14.54.
Two key InvestingPro Tips for ENR are worth noting. First, the company's high shareholder yield is a positive sign for investors. Second, despite not being profitable over the last twelve months, analysts predict that ENR will return to profitability this year. This is in line with the company's valuation, which implies a strong free cash flow yield.
For those interested in additional insights, InvestingPro offers a wealth of other tips related to ENR and other companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.