ENR

It has been about a month since the last earnings report for Energizer Holdings (ENR). Shares have lost about 7.2% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Energizer due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Energizer Holdings, Inc. before we dive into how investors and analysts have reacted as of late. Energizer posted third-quarter fiscal 2026 adjusted earnings of 75 cents per share, down 33.6% year over year and missing the Zacks Consensus Estimate of 86 cents by 12.8%. Lower gross margins, unfavorable product mix and increased promotional investments weighed on profitability.Net sales rose 1.2% to $734.1 million but missed the consensus mark of $737 million by 0.4%. Organic net sales increased 2.7%, supported by distribution gains, product innovation and strong refrigerant demand. Organic growth included a 1.9% volume contribution from global distribution gains and new products in the Batteries & Lights segment. Auto Care contributed 2.2% growth, primarily reflecting higher refrigerant distribution in North America.These gains were partly offset by a 1.4% pricing decline stemming from increased promotional investments in Batteries & Lights. The expiration of an acquired brand license related to Advanced Power Solutions (APS) reduced reported sales by $17.2 million, representing a 2.4% acquisition-related headwind, while favorable currency contributed a 1% benefit. In the fiscal third quarter, adjusted gross profit declined 8.8% year over year to $287.7 million, while the adjusted gross margin contracted 560 basis points to 39.2%. The decline primarily reflected unfavorable product mix, increased promotional investments and the absence of prior-year out-of-period production credits. Excluding those credits, adjusted gross margin declined approximately 200 basis points. These pressures were partially offset by favorable currency impacts. The reported gross margin fell to 38.2% from 55.1%, with the year-ago result benefiting from $112.4 million of production credits, including $78.5 million tied to fiscal 2023 and fiscal 2024 production.Cost discipline remained a focus during the quarter. Adjusted Selling, General and Administrative Expense (SG&A) expenses declined 1.2% year over year to $122.1 million and, as a percentage of net sales, improved 40 basis points to 16.6%. The improvement was driven by approximately $8 million in Project Momentum savings and lower stock compensation expense, partly offset by higher legal costs.Advertising and promotion expenses decreased 3.9% year over year to $41.9 million. Advertising and promotion expenses were 5.7% of net sales in the fiscal third quarter compared with 6% in the year-ago period.Adjusted EBITDA declined 8.8% year over year to $138.7 million as lower gross margins more than offset benefits from lower SG&A, advertising and Research and Development (R&D) spending. Excluding out-of-period production credits, the decline was 8.6%. The adjusted EBITDA margin contracted about 210 basis points to 18.9%. Net sales in the Batteries and Lights segment declined 2% year over year to $524.2 million. Organic net sales increased 0.3%, supported by expanded distribution, innovation and continued market share gains despite the APS license expiration. Favorable currency also aided reported sales.Segment profit declined 19.5% year over year to $127.9 million. The decline primarily reflected the absence of prior-year out-of-period production credits, along with lower gross margins driven by unfavorable product mix and increased promotional investments.Management highlighted continued category outperformance supported by innovation, including the launch of Energizer Ultimate Child Shield, the world's only coin lithium battery designed to help prevent ingestion burns if swallowed, along with expanded distribution across key retail customers. The Auto Care segment generated net sales of $209.9 million, up 10.4% year over year. Organic net sales increased 9.5%, driven by strong refrigerant demand and higher distribution in North America.Segment profit declined 14.1% year over year to $20.7 million, as robust growth in lower-margin refrigerant products pressured profitability.Management noted that while refrigerants drove third-quarter performance, premium Appearance products remain a significant long-term growth opportunity. The company continues expanding its premium Armor All Podium Series portfolio to strengthen its competitive position and improve portfolio quality. For the first nine months of fiscal 2026, Energizer generated $156 million in operating cash flow and $105 million in free cash flow, representing 4.9% of net sales. The company continued to prioritize cash generation as a key component of its long-term value creation strategy.Debt reduction remained the company's highest capital allocation priority. Through the third quarter, Energizer reduced debt by more than $80 million and continues to expect fiscal 2026 debt repayment of $150-$200 million. The company paid a quarterly dividend of 30 cents per share, returning $20.6 million to shareholders during the quarter and approximately $65 million during the first nine months of fiscal 2026.Management expects free cash flow to strengthen further as Project Momentum cash costs decline, capital expenditures normalize by roughly $30 million annually and the company collects the remaining $53 million of IEEPA tariff recoveries. The APS acquisition continued to affect reported results during the third quarter.Energizer completed the APS acquisition on May 2, 2025, and sold batteries under an acquired brand license through Dec. 31, 2025. The expiration of that license reduced reported net sales by $17.2 million, representing a 2.4% headwind. However, sales generated as customers transitioned to Energizer's legacy brands were included within organic sales, contributing to the company's 2.7% organic sales growth.Management said the APS transition remains an important element of its portfolio strategy as it strengthens its branded portfolio and expands distribution while migrating customers to Energizer's core brands. Looking ahead, Energizer expects fourth-quarter organic net sales to be flat to down low single digits year over year, reflecting muted battery category trends and some refrigerant demand shifting into the third quarter.The company expects fourth-quarter adjusted earnings of $1.25-$1.35 per share, representing approximately 25% year-over-year growth at the midpoint, driven by productivity initiatives, supply chain optimization and actions taken throughout the year to strengthen profitability.For fiscal 2026, Energizer expects organic net sales to decline low single digits compared with its previous expectation of roughly flat organic sales with growth returning in the second half.The company also expects adjusted earnings per share at the low end of its previously guided range of $3.30-$3.60, versus its earlier expectation for the high end of the range. Likewise, adjusted EBITDA is expected at the low end of the prior $580-$610 million range rather than the high end previously anticipated.Management expects continued investments in distribution expansion, innovation, operational improvements and customer transitions to support continued outperformance versus the battery category, strengthen its competitive position and drive long-term earnings and free cash flow growth despite a challenging consumer environment. It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -9.01% due to these changes. Currently, Energizer has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Energizer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Energizer is part of the Zacks Consumer Products - Staples industry. Over the past month, Albertsons Companies, Inc. (ACI), a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended May 2026 more than a month ago. Albertsons Companies reported revenues of $24.94 billion in the last reported quarter, representing a year-over-year change of +0.2%. EPS of $0.42 for the same period compares with $0.55 a year ago. Albertsons Companies is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of -25%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Albertsons Companies. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energizer Holdings, Inc. (ENR) : Free Stock Analysis Report Albertsons Companies, Inc. (ACI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Let’s dig into the relative performance of Energizer (NYSE:ENR) and its peers as we unravel the now-completed Q2 household products earnings season. Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends. The 10 household products stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1.6% above. In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results. Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries. Energizer reported revenues of $734.1 million, up 1.2% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. "We delivered a solid third quarter in an operating environment that remains dynamic, with organic Net sales growth across both segments and continued progress against the strategic priorities we outlined at the beginning of the year," said Mark LaVigne, Chief Executive Officer. Interestingly, the stock is up 7.3% since reporting and currently trades at $22.67. Read our full report on Energizer here, it’s free. A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care. Spectrum Brands reported revenues of $753.3 million, up 7.7% year on year, outperforming analysts’ expectations by 2.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates. The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $90.66. Is now the time to buy Spectrum Brands? Access our full analysis of the earnings results here, it’s free. Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control. Central Garden & Pet reported revenues of $882.4 million, down 8.2% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted a miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations. Central Garden & Pet delivered the slowest revenue growth of the whole group. The stock is flat since the results and currently trades at $44.35. Read our full analysis of Central Garden & Pet’s results here. Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product. WD-40 reported revenues of $195.1 million, up 24.3% year on year. This number topped analysts’ expectations by 12.9%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations. WD-40 delivered the biggest analyst estimate beat and fastest revenue growth in the group. The stock is down 3.9% since reporting and currently trades at $230. Read our full, actionable report on WD-40 here, it’s free. Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste. Reynolds reported revenues of $944 million, flat year on year. This result beat analysts’ expectations by 1.1%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ gross margin estimates but full-year EBITDA guidance meeting analysts’ expectations. The stock is up 1.9% since reporting and currently trades at $26.31. Read our full, actionable report on Reynolds here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Energizer’s second quarter results showed modest top-line gains, with management highlighting that both its Batteries & Lights and Auto Care segments contributed to organic revenue growth despite a softer consumer demand environment. CEO Mark LaVigne pointed to “expanded distribution, advanced innovation, and progress on the transition of APS sales into the Energizer branded portfolio” as key factors supporting the quarter. While the company’s sales exceeded Wall Street estimates, non-GAAP earnings per share fell short of expectations, reflecting ongoing margin pressures and a more promotional retail environment. Is now the time to buy ENR? Find out in our full research report (it’s free). Revenue: $734.1 million vs analyst estimates of $725.2 million (1.2% year-on-year growth, 1.2% beat) Adjusted EPS: $0.75 vs analyst expectations of $0.83 (9.2% miss) Adjusted EBITDA: $138.7 million vs analyst estimates of $144.1 million (18.9% margin, 3.8% miss) Management reiterated its full-year Adjusted EPS guidance of $3.45 at the midpoint Operating Margin: 12.2%, down from 28.3% in the same quarter last year Organic Revenue rose 2.7% year on year (beat) Market Capitalization: $1.50 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lauren Lieberman (Barclays) asked why management shifted guidance lower for the year despite in-line delivery in Q2. CEO Mark LaVigne explained that softer battery category trends, not company-specific issues, drove the revised demand outlook. Lauren Lieberman (Barclays) followed up on retailer inventory levels. LaVigne said earlier inventory adjustments were largely behind them and that current guidance reflects any remaining impact. Andrea Teixeira (JPMorgan) questioned whether lower category growth was due to volume, price, or consumer trading down. LaVigne clarified that both volume and value mix were pressured, but Energizer continued to gain share. Andrea Teixeira (JPMorgan) asked about cost inflation and commodity pressures. CFO John Drabik highlighted ongoing efforts to manage costs and improve gross margins through operational levers like sourcing and productivity. Robert Ottenstein (Evercore) inquired whether battery category weakness was structural or temporary. LaVigne emphasized that the category remains fundamentally healthy, attributing current trends to near-term consumer caution rather than long-term shifts. In the coming quarters, the StockStory team will be watching (1) whether Energizer can sustain market share and distribution gains even as category growth remains muted, (2) ongoing execution of cost controls and the completion of Project Momentum to support gross margin stability, and (3) the pace of free cash flow generation and debt reduction as capital spending normalizes. Any unexpected changes in consumer demand or competitive dynamics could also influence the outlook. Energizer currently trades at $21.93, up from $21.12 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 10 a.m. ET Vice President, Global Finance, Treasurer and Investor Relations - Jonathan Poldan President and Chief Executive Officer - Mark LaVigne Executive Vice President and Chief Financial Officer - John Drabik Operator: Good morning. My name is Kelsey, and I'll be your conference operator for today's call. At this time, I would like to welcome everyone to the Energizer's Third Fiscal Year 2026 Conference Call. [Operator Instructions] This event is being recorded Tuesday, August 4, 2026. I would now like to turn the conference call over to Mr. Jon Poldan, Vice President, Global Finance, Treasurer and Investor Relations. Jonathan Poldan: Good morning, and welcome to Energizer's Third Quarter Fiscal 2026 Conference Call. Joining me today are Mark LaVigne, President and Chief Executive Officer; and John Drabik, Executive Vice President and Chief Financial Officer. In just a moment, Mark will share a few opening comments, and then we'll take your questions. A replay of this call will be available on the Investor Relations section of our website, energizerholdings.com. In addition, please note that our earnings release, prepared remarks, and a slide deck are also posted on our website. During the call, we will make forward-looking statements about the company's future business and financial performance, among other matters. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results that differ materially from these statements. We do not undertake to update these forward-looking statements. Other factors that could cause actual results to differ materially from these statements are included in reports we file with the SEC. We also refer in our presentation to non-GAAP financial measures. A reconciliation of non-GAAP financial measures to comparable GAAP measures is shown in our press release issued earlier today, which is available on our website. Information concerning our categories and estimated market share discussed on this call relates to the categories where we compete and is based on Energizer's internal data, data from industry analysis and estimates we believe to be reasonable. The battery category information includes both brick-and-mortar and e-commerce retail sales. Unless otherwise noted, all comments regarding the quarter and year pertain to Energizer's fiscal year and all comparisons to prior year relate to the same period in fiscal 2025. With that, I would like to turn the call over to Mark. Mark LaVigne: Good morning, and thanks for joining us today. As in prior quarters, we posted prepared remarks on our website that provide a detailed review of our third quarter performance and our outlook. But, I wanted to begin with a few brief comments. As we move through fiscal 2026, our priorities remain centered on strengthening the earnings power of the business, generating strong free cash flow and continuing to improve our balance sheet. In the third quarter, we delivered organic growth across both Batteries & Lights and Auto Care, while sustaining the margin recovery achieved since the beginning of the year. These results reflect the actions we've taken over multiple years to strengthen our brands, improve execution, streamline our cost structure, and build a more resilient organization. While consumer demand moderated in the quarter, our business continues to benefit from the progress across key strategic initiatives, enabling Energizer to meaningfully outperform the battery category. We expanded distribution, advanced innovation, and made further progress on the transition of APS sales into the Energizer branded portfolio. At the same time, Project Momentum has improved our operational flexibility and positioned us to navigate a range of operating environments while maintaining a focus on profitability and cash generation. Looking ahead, we remain confident in our strategy and the actions already underway across the business. We expect strong fourth quarter earnings growth to be supported by productivity initiatives, supply chain optimization and the work we have done throughout the year to strengthen the profitability of the business. We believe these actions position us well to continue creating value through strong free cash flow generation and disciplined capital allocation. Thank you for your continued interest in Energizer, and with that, let's open the call for questions. Operator: [Operator Instructions] Your first question comes from Lauren Lieberman from Barclays. Lauren Lieberman: I wanted to start by just kind of getting more detail on the change in guidance. So 1 quarter left and you moved to the low end of the range after an in-line delivery this quarter. So just wanted to better understand the drivers of that change. Mark LaVigne: When we spoke in May, our expectation at that time was that the back half of the year, we deliver around 4% organic growth. Today, we expect the back half to be roughly flat to up 1%. So clearly, there's been a change in the demand outlook. The primary driver behind this is in the battery category. At the time of the Q2 call, we expected the category to be roughly flat through the balance of the year. Since then, consumers have remained more cautious than we anticipated and the battery category trends have softened by roughly 200 to 300 basis points relative to those expectations. And those items have been reflected in the outlook we provided today. This is more of a category adjustment than it is really an Energizer adjustment. The business is actually performing well within the environment that we're seeing. We continue to gain share. We're expanding distribution. We're launching innovation, and we're outperforming the category. So while we've taken a more prudent view on our top line demand, our confidence in the business has not changed at all. The actions we've been taking are working. We're improving the quality of the portfolio, rebuilding margins, and strengthening the earnings power and increasing financial flexibility. I would also point out the earnings and cash flow story remains very much intact. Gross margin has improved more than 430 basis points from first quarter levels. We expect fourth quarter gross margin to be north of 40%, and we expect 25% adjusted EPS growth at the midpoint in Q4. And at the same time, we expect strong free cash flow generation and meaningful debt reduction. So all in, that's kind of the way we were thinking about the balance of the year and wanted to provide that outlook for Q4 as well as [ pension ] up '26. Lauren Lieberman: Okay, great. And just one given the slowdown in category growth that you're calling, I was just curious about your read on retailer inventory levels. I know inventory there's been some retailer inventory dynamics in the first half of the fiscal year, but with the incremental slowing in the category, is that something we should watch out for further from here? Mark LaVigne: It is something we watch. We went through this. It occurred earlier this year, and there's actually a slide in the slides -- there's a reference in one of the slides we posted this morning where we referenced that in the first half. It was really the first part of this year where we dealt with some inventory and destocking. We do not expect it to be an additional meaningful headwind. And really, it's embedded in the revised numbers that we provided today. Operator: And your next question comes from Andrea Teixeira from JPMorgan. Andrea Teixeira: I was just hoping to see if you can comment a little bit on that decline of 200 to 300 basis points. From a volume perspective, from a pricing perspective, it seems like it's both that consumers are also down trading not only like volume-wise, but down trading from a value perspective. So can you elaborate on that and also speak to not only the U.S. but international? Mark LaVigne: Sure, Andrea. Let me get started. I think it's important to separate near-term consumer environment from long-term health of the overall category. Consumers are being more selective today. They're looking for value. They're shopping across channels and pack sizes and managing overall basket spend more carefully. That can pressure dollars and mix in the short term. Energizer is winning in this environment. In the U.S., our value grew 1.8%, volume grew 5% on a category decline. We also gained volume and value share globally as well. I think on the promotional front, we have no interest in buying share. I think for our business, the category is more promotional today because consumers are seeking that value that I mentioned. But the improvement we're seeing in our business is broader than just price. We're benefiting from better distribution, stronger execution, innovation, and the breadth of our portfolio. The actions we're taking are resonating, distribution gains and the strength of our brands and the breadth of our portfolio allow us to meet consumers across both premium and value. So we're not assuming that the consumer improves from here, but we are managing the business to win with consumers where they are today. I think you're seeing that play out. I would say in the Q3, you are seeing a bit of a pricing headwind in Q3. We would expect that to be neutral in Q4. So I would not extrapolate the trends you're seeing in Q3 into Q4. Andrea Teixeira: And then can you comment on the cost side, how we should be thinking of your outlook now with oil prices, you get less impacted because your cargo is value-added, but just thinking of how to think about the commodity cost pressure also on the raw material side. John Drabik: Sure. Andrea, we've done a good job getting costs out of the system. We've seen improvement in gross margins from the beginning of the year to where we are now. As Mark mentioned, we're expecting fourth quarter gross margin to be in the low 40s, and that's really a clean number for the first time this year. By clean, I mean, we've had a lot of these in and outs, for instance, there won't be any IEEPA credits in our fourth quarter number. So we think that reflects a lot of the hard work that we've done, and we're in a much better shape. There's still a number of moving parts, and we've been talking about it for the last couple of quarters, commodities, tariffs, FX, logistics. We're going to be disciplined about providing a full view to that when we're ready, that should be next quarter. What I would say is we have a lot of levers that are available to us, including productivity, sourcing, network flexibility, operating efficiencies, and pricing where appropriate. So our goal as we go forward is going to be to maintain the margins we've worked to recover, as well as the overall earnings profile of the business. I would say the other area where I think we're seeing as we move forward some important factors that I think will bolster our free cash flow, which is really important to the story. So first we're finishing up Project Momentum this year. So we expect related cash costs to execute that program, which we're in large part like facility exits and severance. Those should be significantly reduced going forward. The CapEx that we've been spending really for digital transformation and some of that supply chain transformation, that's been elevated in recent years in coordination with the Momentum program. And we expect that to be down pretty significantly. We're pushing for like 1% of net sales or $30 million to come back into the run rate basis. And then we talked about it last quarter and it's starting to occur, but we've already collected about $11 million of IEEPA tariffs. That's on the recovery side. We expect the remaining $53 million that we booked to provide a meaningful source of cash generation as we kind of finish out this year and go into next year. So cash flow should be a strong story for us as we finish up the year and go into '27. Operator: [Operator Instructions] And your next question comes from Robert Ottenstein from Evercore. Robert Ottenstein: First, just wanted to follow up on the category slowdown. Is this something that increased during the quarter, was fairly stable? Just kind of a little bit of color on the cadence of that. And then I think you mentioned 200 to 300 basis points, would that have been split roughly equally between price and volume, just any color around that. And then my second question is, we get the Circana data, and in that, your main competitor had pretty dramatic declines, I mean very high double-digit declines in volume in the period. I was wondering if you can give any color around that. It looks like a lost customer and any color in terms of if that's the fact, timing around that, and circumstances, whether that's something that will likely benefit you going forward. Mark LaVigne: I never like to speak on behalf of our competitors, I think I would just direct questions that way. We see the scanner data just like you do. Rest assured, we are in the market competing and trying to win distribution and do it the right way. So -- and it all plays out in the scanner data that you receive. I think in the -- to your first question around the dynamic in the battery category, I think we referenced it in our last quarter where we were seeing a bit of pressure on the consumer. And I think as we worked our way through the quarter, we saw it accelerate a bit. We're not anticipating that it snaps back and improves in a meaningful way over the balance of the year, which led to the 200 to 300 basis call down that we made this morning. I do think that's a near-term dynamic, and I don't think it impacts our longer-term view of the category. Devices still continue to be healthy. Usage continues to be healthy. Change-out frequency is healthy. So all the fundamentals behind category demand are in place. And what you are seeing though is consumers reacting in a more near-term environment where they're making choices. They're making choices about frequency of their spend. They're stretching dollars further. And as a result, they're seeking value and they're more cautious. And you're seeing that play out in the battery category, which results in our making a call for the Q4 that we did this morning. Robert Ottenstein: And again, is this weakness split equally between volume and value and price? Or is it biased in one direction or the other? Mark LaVigne: Well, so what you saw in the quarter is there's a little bit of promotional activity and there's a little bit of volume erosion in the quarter. I think going forward, you're going to see that split be -- it's going to be split a little bit between both. And so I think it's just our job to manage continuing to connect with consumers, invest in promotion where it makes sense, drive the appropriate volume dynamics, keep margin -- keep the margin that we've worked hard to preserve intact so that we can go into '27 with a stable margin, which allows the rest of our investment thesis to hold. John Drabik: Yes, and I think our fourth quarter call, specifically for us is that pricing would be neutral to a slightly positive. Operator: Next question comes from Brian McNamara from Canaccord Genuity. Madison Callinan: Hi, this is Madison Callinan on for Brian. Not to beat a dead horse, but can you comment on the battery category and struggles there? Is there something structural going on, whether it's a push towards battery-free technologies or something else? Is it pantry destocking? Thanks for any color you guys can give. Mark LaVigne: No, there's nothing structural going on. The foundational health of the battery category is intact. Again, I mentioned devices continue to be stable in the household usage frequency. If anything, you're seeing a little bit of increased frequency because the power that these devices require is greater than it used to be. So structurally, the battery category is healthy. I think what you are seeing play out in the scanner data numbers is simply a reflection of consumer caution, value-seeking behavior, and the dynamic nature with which they shop. And they're changing channels, they're changing pack sizes. All of that plays out in the scanner data. But no, we feel as positive about the battery category today as we ever have. Madison Callinan: And then are there any nuances to holiday shipment timing that we should be mindful of for Q4 and Q1 of fiscal '27? Mark LaVigne: Holiday timing? Anything that we're aware of was built into our call today. And again, our back half is right now between Q3 and Q4 will be flat to plus 1%. And that's built into any sort of pacing and phasing we had relative to holiday. Operator: Thank you. And there are no further questions at this time. Mark, you may please proceed. Mark LaVigne: Great. Thanks for joining us today and your interest in Energizer. Hope everyone has a great rest of the day. Operator: Ladies and gentlemen, this does conclude your conference call for today. Before you buy stock in Energizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Energizer (ENR) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Energizer Holdings, Inc. has reported past third-quarter and nine‑month 2026 results, with sales inching up to US$734.1 million and US$2.16 billion respectively, while net income fell to US$39.9 million for the quarter and US$46.6 million year‑to‑date versus the prior year. Despite this squeeze on profitability and lower earnings per share, the Board still affirmed a US$0.30 per‑share dividend payable in September 2026, highlighting an ongoing commitment to shareholder payouts. Next, we will examine how higher sales but sharply reduced earnings and the maintained dividend shape Energizer Holdings’ current investment narrative. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To stay on board as an Energizer Holdings shareholder right now, you have to believe that a slow‑growth, cash‑generative batteries and household products business can work through a period of compressed margins while still rewarding investors. The latest results underline the tension: sales are up modestly, but earnings have dropped sharply and net profit margins are far below last year, partly driven by a very large one‑off loss in the last twelve months. Against that backdrop, the Board’s decision to hold the dividend at US$0.30 per share keeps income investors in focus, but it also amplifies questions about dividend coverage, interest costs and balance‑sheet flexibility if profitability remains under pressure. In the near term, the key catalyst and risk cluster around whether management can rebuild earnings quality without sacrificing that payout. However, investors should be aware of how weaker earnings strain dividend and debt coverage. Energizer Holdings' shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be. Only two fair value estimates from the Simply Wall St Community span roughly US$22 to just over US$92 per share, showing very different expectations. Against that backdrop, the recent profit squeeze and thin dividend cover may weigh heavily on how you interpret those more optimistic views. Explore 2 other fair value estimates on Energizer Holdings - why the stock might be worth just $22.00! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Energizer Holdings research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. Our free Energizer Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Energizer Holdings' overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: Uncover the next big thing with 20 elite penny stocks that balance risk and reward. The latest GPUs need a type of rare earth metal called Dysprosium and there are only 28 companies in the world exploring or producing it. Find the list for free. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ENR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Energizer Holdings, Inc.? Here are five stocks we like better. Energizer lowered its second-half organic growth outlook to flat to up 1%, from roughly 4%, as consumer caution and value-seeking behavior weakened battery-category demand. Management said the issue appears temporary and that Energizer continues to gain market share. The company maintained its profitability outlook despite softer sales, citing gross-margin recovery of more than 430 basis points since the first quarter and expectations for fourth-quarter margin above 40%. Energizer expects strong free cash flow and meaningful debt reduction, supported by cost savings, lower future capital spending, and up to $53 million in remaining IEEPA tariff recoveries through fiscal 2026 and into fiscal 2027. Charging Forward: 2 US Battery Stocks to Electrify Your Portfolio Energizer (NYSE:ENR) said it delivered organic growth across its batteries and lights and auto care businesses in its fiscal third quarter, while sustaining margin recovery achieved since the start of the year. However, the company lowered its expectations for second-half organic growth as consumer caution weighed on the battery category. President and Chief Executive Officer Mark LaVigne said Energizer now expects organic growth in the second half to range from flat to up 1%, compared with its prior expectation of about 4% growth. The revision reflects softer battery-category demand rather than a change in the company’s view of its own competitive performance, he said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Revolutionary Battery Stock Gains Momentum with 3D Silicon-Anodes “Since then, consumers have remained more cautious than we anticipated, and the battery category trends have softened by roughly 200 to 300 basis points relative to those expectations,” LaVigne said. He added that Energizer continues to gain share, expand distribution, introduce innovation and outperform the broader category. Management characterized the demand weakness as a near-term consumer-driven issue rather than a structural change in the battery market. Consumers are shopping across channels and pack sizes, managing their basket spending more carefully and seeking value, LaVigne said. → 3 Drone Stocks That Should Soar After the Summer Slump More Analysts Should See Energizer Holdings As A Buy: Here Is Why In the U.S., Energizer’s value sales rose 1.8% and volume increased 5%, according to LaVigne, while the overall category declined. He said the company also gained both volume and value share globally. Chief Financial Officer John Drabik said the battery category’s underlying fundamentals remain intact, citing healthy device ownership, usage and battery replacement frequency. He also said devices may require more power than in the past, potentially increasing replacement frequency. → Why Rare Earth Processing Could Be the Real 2027 Opportunity “There’s nothing structural going on,” Drabik said in response to a question about whether battery-free technologies or other shifts were affecting the category. “What you are seeing play out in the scanner data numbers is simply a reflection of consumer caution, value-seeking behavior, and the dynamic nature with which they shop.” Management said category pressure accelerated somewhat as the third quarter progressed. The company does not expect a meaningful rebound through the remainder of fiscal 2026, which contributed to its revised outlook. Energizer said promotional activity and some volume erosion affected the third quarter. LaVigne said pricing represented a headwind in the period but is expected to be neutral to slightly positive in the fiscal fourth quarter. The company said it does not intend to pursue market share through uneconomic promotional spending. Instead, management pointed to distribution gains, brand strength, innovation and its portfolio across premium and value offerings as factors helping it compete with value-focused consumers. LaVigne also addressed retailer inventory levels, noting that Energizer dealt with inventory destocking during the first half of the fiscal year. He said the company does not expect additional retailer inventory reductions to become a meaningful headwind and that the effect is embedded in its revised outlook. Drabik said holiday shipment timing and related pacing were also incorporated into the company’s updated forecast. Energizer expects combined organic growth for the third and fourth quarters to be flat to up 1%. Despite the lower top-line outlook, Energizer maintained its expectation for improved profitability and cash generation. LaVigne said gross margin has improved by more than 430 basis points from first-quarter levels and is expected to exceed 40% in the fourth quarter. The company expects adjusted earnings per share growth of 25% at the midpoint of its fourth-quarter outlook, according to LaVigne. Drabik described expected fourth-quarter gross margin in the low 40% range as a “clean” number, noting it would not include IEEPA credits that affected prior periods. Management attributed margin improvement to cost-reduction efforts, supply-chain optimization, productivity initiatives and Project Momentum, a program intended to improve operational flexibility and streamline the company’s cost structure. Looking ahead, LaVigne said Project Momentum-related cash costs, including facility exits and severance, should decline significantly after fiscal 2026. He also said capital expenditures associated with digital and supply-chain transformation are expected to fall, with the company targeting a run-rate capital expenditure level of about 1% of net sales, or $30 million. Energizer has collected about $11 million of IEEPA tariff recoveries and expects the remaining $53 million it has booked to provide an additional source of cash generation through the end of fiscal 2026 and into fiscal 2027. Management said it expects strong free cash flow and meaningful debt reduction as it completes the current fiscal year. Energizer Holdings, Inc is a global consumer products company best known for its portfolio of portable power and lighting solutions. The company's primary business activities include the design, manufacture and marketing of batteries under the Energizer and Rayovac brands, as well as portable lighting products such as flashlights, headlamps and lanterns. Energizer also produces a range of automotive appearance and protection products, including tire inflators and repair kits, along with personal care offerings like aerosol insect repellents and sunscreen under licensed brands. Founded in 2000 through the spin-off of the battery business from Ralston Purina Company, Energizer has grown through both organic development and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Energizer Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the revised outlook to a 200 to 300 basis point softening in the battery category relative to May expectations, driven by increased consumer caution and value-seeking behavior. Despite category headwinds, Energizer reported organic growth in both Batteries & Lights and Auto Care, outperforming the broader market through expanded distribution and innovation. The company is successfully transitioning APS sales into the Energizer branded portfolio, which management views as a key driver for long-term brand strength and portfolio quality. Operational flexibility has been enhanced via Project Momentum, allowing the organization to maintain profitability and margin recovery even as consumer demand moderates. Management emphasized that while consumers are managing basket spend more carefully, the structural health of the category remains intact with stable device usage and change-out frequency. Performance in the U.S. was characterized by a 5% volume growth despite a declining category, which management credits to the breadth of their portfolio across premium and value tiers. The back half of fiscal 2026 is now expected to be roughly flat to up 1% organic growth, reflecting a more prudent view of near-term demand trends. Fourth quarter gross margins are projected to exceed 40%, supported by productivity initiatives and the absence of one-time IEEPA credit impacts. Management expects 25% adjusted EPS growth at the midpoint for Q4, driven by supply chain optimization and structural cost improvements. Free cash flow is expected to strengthen significantly as Project Momentum concludes, with capital expenditures projected to drop to approximately 1% of net sales or $30 million. The company anticipates a meaningful cash infusion from the recovery of the remaining $53 million in booked IEEPA tariffs through the end of the year and into fiscal 2027. Project Momentum is entering its final stages, which will reduce future cash costs related to facility exits and severance payments. Inventory destocking, which was a headwind in the first half of the year, is not expected to be a meaningful factor in the fourth quarter. Management noted a pricing headwind in Q3 but expects pricing to be neutral to slightly positive in the fourth quarter. The company has already collected $11 million of the $64 million total expected IEEPA tariff recoveries. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the adjustment is a category-level shift rather than an Energizer-specific issue, citing a 2-3% drop in category trends since May. The revised guidance assumes the consumer environment does not improve for the remainder of the fiscal year. The Q4 gross margin in the low 40s is described as a 'clean' run rate reflecting the benefits of productivity and sourcing shifts. Management intends to use levers like network flexibility and pricing to maintain recovered margins against potential commodity or FX volatility. Management explicitly denied any structural decline from battery-free technologies, noting that modern devices actually require more frequent power replacement. Current weakness is attributed to consumers stretching dollars by changing shopping channels and pack sizes rather than a fundamental drop in usage. When asked about a competitor's double-digit volume decline, management declined to comment specifically but noted they are actively winning distribution. The company emphasized they have 'no interest in buying share' through excessive promotion, focusing instead on innovation and brand strength.

Energizer Holdings, Inc. ENR posted third-quarter fiscal 2026 adjusted earnings of 75 cents per share, down 33.6% year over year and missing the Zacks Consensus Estimate of 86 cents by 12.8%. Lower gross margins, unfavorable product mix and increased promotional investments weighed on profitability.Net sales rose 1.2% to $734.1 million but missed the consensus mark of $737 million by 0.4%. Organic net sales increased 2.7%, supported by distribution gains, product innovation and strong refrigerant demand. The metric lagged our prediction of a 2.8% increase in organic net sales. Energizer Holdings, Inc. price-consensus-eps-surprise-chart | Energizer Holdings, Inc. Quote Organic growth included a 1.9% volume contribution from global distribution gains and new products in the Batteries & Lights segment. Auto Care contributed 2.2% growth, primarily reflecting higher refrigerant distribution in North America.These gains were partly offset by a 1.4% pricing decline stemming from increased promotional investments in Batteries & Lights. The expiration of an acquired brand license related to Advanced Power Solutions ("APS") reduced reported sales by $17.2 million, representing a 2.4% acquisition-related headwind, while favorable currency contributed a 1% benefit. In the fiscal third quarter, adjusted gross profit declined 8.8% year over year to $287.7 million, while the adjusted gross margin contracted 560 basis points to 39.2%, which lagged our estimate of 40%. The decline primarily reflected unfavorable product mix, increased promotional investments and the absence of prior-year out-of-period production credits. Excluding those credits, adjusted gross margin declined approximately 200 basis points. These pressures were partially offset by favorable currency impacts. The reported gross margin fell to 38.2% from 55.1%, with the year-ago result benefiting from $112.4 million of production credits, including $78.5 million tied to fiscal 2023 and 2024 production.Cost discipline remained a focus during the quarter. Adjusted Selling, General and Administrative Expense (SG&A) expenses declined 1.2% year over year to $122.1 million and, as a percentage of net sales, improved 40 basis points to 16.6%. We expected adjusted SG&A expenses, as a percentage of net sales, to be 16% in the fiscal third quarter. The improvement was driven by approximately $8 million in Project Momentum savings and lower stock compensation expense, partly offset by higher legal costs.Advertising and promotion expenses decreased 3.9% year over year to $41.9 million. Advertising and promotion expenses were 5.7% of net sales in the fiscal third quarter compared with 6% in the year-ago period.Adjusted EBITDA declined 8.8% year over year to $138.7 million as lower gross margins more than offset benefits from lower SG&A, advertising and Research and Development (R&D) spending. Excluding out-of-period production credits, the decline was 8.6%. The adjusted EBITDA margin contracted about 210 basis points to 18.9%. Net sales in the Batteries and Lights segment declined 2% year over year to $524.2 million. Organic net sales increased 0.3%, supported by expanded distribution, innovation and continued market share gains despite the APS license expiration. Favorable currency also aided reported sales.Segment profit declined 19.5% year over year to $127.9 million. The decline primarily reflected the absence of prior-year out-of-period production credits, along with lower gross margins driven by unfavorable product mix and increased promotional investments.Management highlighted continued category outperformance supported by innovation, including the launch of Energizer Ultimate Child Shield, the world's only coin lithium battery designed to help prevent ingestion burns if swallowed, along with expanded distribution across key retail customers. The Auto Care segment generated net sales of $209.9 million, up 10.4% year over year. Organic net sales increased 9.5%, driven by strong refrigerant demand and higher distribution in North America.Segment profit declined 14.1% year over year to $20.7 million, as robust growth in lower-margin refrigerant products pressured profitability.Management noted that while refrigerants drove third-quarter performance, premium Appearance products remain a significant long-term growth opportunity. The company continues expanding its premium Armor All Podium Series portfolio to strengthen its competitive position and improve portfolio quality. For the first nine months of fiscal 2026, Energizer generated $156 million in operating cash flow and $105 million in free cash flow, representing 4.9% of net sales. The company continued to prioritize cash generation as a key component of its long-term value creation strategy.Debt reduction remained the company's highest capital allocation priority. Through the fiscal third quarter, Energizer reduced debt by more than $80 million and continues to expect fiscal 2026 debt repayment of $150-$200 million. The company paid a quarterly dividend of 30 cents per share, returning $20.6 million to its shareholders during the quarter and approximately $65 million during the first nine months of fiscal 2026.Management expects free cash flow to strengthen further as Project Momentum cash costs decline, capital expenditures normalize by roughly $30 million annually and the company collects the remaining $53 million of IEEPA tariff recoveries. The APS acquisition continued to affect reported results during the fiscal third quarter.Energizer completed the APS acquisition on May 2, 2025, and sold batteries under an acquired brand license through Dec. 31, 2025. The expiration of that license reduced reported net sales by $17.2 million, representing a 2.4% headwind. However, sales generated as customers transitioned to Energizer's legacy brands were included within organic sales, contributing to its 2.7% organic sales growth.Management said the APS transition remains an important element of the portfolio strategy as it strengthens the branded portfolio and expands distribution while migrating customers to Energizer's core brands. Looking ahead, Energizer expects fiscal fourth-quarter organic net sales to be flat to down low single digits year over year, reflecting muted battery category trends and some refrigerant demand shifting into the fiscal third quarter.The company expects fiscal fourth-quarter adjusted earnings of $1.25-$1.35 per share, representing approximately 25% year-over-year growth at the midpoint, driven by productivity initiatives, supply-chain optimization and actions taken throughout the year to strengthen profitability.For fiscal 2026, Energizer expects organic net sales to decline low single digits compared with its previous expectation of roughly flat organic sales with growth returning in the second half.The company also expects adjusted earnings per share at the low end of the previously guided range of $3.30-$3.60, compared with its earlier expectation for the high end of the range. Likewise, adjusted EBITDA is expected at the low end of the prior $580-$610 million range rather than the high end previously anticipated.Management expects continued investments in distribution expansion, innovation, operational improvements and customer transitions to support continued outperformance compared with the battery category, strengthen its competitive position and drive long-term earnings and free cash flow growth despite a challenging consumer environment. ENR Stock Past Three-Month Performance Image Source: Zacks Investment Research Shares of this Zacks Rank #3 (Hold) company have risen 20.4% over the past three months compared with the industry’s 4.5% growth. We have highlighted three better-ranked stocks, namely Newell Brands Inc. NWL, WD-40 Company WDFC and Purple Innovation Inc. PRPL.Newell Brands is a global manufacturer and marketer of consumer and commercial products. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.NWL delivered a trailing four-quarter earnings surprise of 40%, on average. The consensus estimate for Newell Brands’ current fiscal-year sales indicates growth of 1% from the year-ago period’s reported figures.WD-40 develops, markets and sells maintenance and cleaning products used to lubricate, protect, clean and maintain equipment, tools and household items. It currently carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for WD-40’s current fiscal-year earnings and revenues implies growth of 7.2% and 9.9%, respectively, from the year-ago actuals. WDFC delivered a trailing four-quarter average earnings surprise of 18.3%.Purple Innovation designs, manufactures and sells premium sleep products, including mattresses, pillows, cushions, bed frames and bedding accessories. It also holds a Zacks Rank of 2 at present.The Zacks Consensus Estimate for Purple Innovation’s current fiscal-year revenues implies decline of 0.4% from the year-ago actuals. PRPL delivered a trailing four-quarter average earnings surprise of 17.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energizer Holdings, Inc. (ENR) : Free Stock Analysis Report Newell Brands Inc. (NWL) : Free Stock Analysis Report WD-40 Company (WDFC) : Free Stock Analysis Report PURPLE INNOVATION, INC. (PRPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Organic Growth: Delivered organic growth across both Batteries & Lights and Auto Care segments. Margin Recovery: Sustained margin recovery achieved since the beginning of the fiscal year. Consumer Demand: Consumer demand moderated during the quarter. Battery Category Performance: Outperformed the battery category meaningfully. Fourth Quarter Outlook: Expects strong fourth quarter earnings growth supported by productivity initiatives and supply chain optimization. Warning! GuruFocus has detected 5 Warning Signs with ENR. Is ENR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Energizer Holdings Inc (NYSE:ENR) delivered organic growth across both Batteries & Lights and Auto Care in Q3, outperforming the battery category. The company gained volume and value share globally, with US value growing 1.8% and volume up 5% despite a category decline. Gross margin improved by more than 430 basis points from Q1 levels, with Q4 gross margin expected to be north of 40%. Project Momentum has improved operational flexibility and is expected to significantly reduce cash costs, boosting free cash flow. The company expects strong Q4 adjusted EPS growth of 25% at the midpoint, supported by productivity initiatives and supply chain optimization. Energizer Holdings Inc (NYSE:ENR) has collected $11 million of IEEPA tariffs and expects the remaining $53 million to provide meaningful cash generation. CapEx is expected to decline significantly to about 1% of net sales, enhancing free cash flow generation. Energizer Holdings Inc (NYSE:ENR) lowered its full-year guidance due to a softer-than-expected battery category, with back-half organic growth now expected to be flat to up 1% versus prior 4%. Consumer demand moderated in Q3, with consumers becoming more cautious and value-seeking, pressuring category dollars and mix. The battery category trends softened by 200 to 300 basis points relative to expectations, driven by consumer caution and promotional activity. Q3 experienced a pricing headwind, though the company expects pricing to be neutral in Q4. The company faces ongoing cost pressures from commodities, tariffs, FX, and logistics, which could impact margins. Retailer inventory dynamics and potential destocking remain a watch item, though not expected to be a meaningful headwind. The company is not assuming an improvement in consumer demand, indicating continued near-term softness. Q: Can you provide more detail on the change in guidance, given the in-line delivery this quarter?A: Mark Lavigne, President and CEO, explained that the primary driver is a softening in the battery category. While they previously expected roughly flat category trends, consumer caution has caused trends to soften by 200 to 300 basis points. He emphasized this is a category adjustment, not an Energizer-specific issue, as the company continues to gain share and outperform. The earnings and cash flow story remains intact, with expectations for strong Q4 EPS growth and gross margin north of 40%. Q: Given the slowdown in category growth, should we watch out for further retailer inventory destocking?A: Mark Lavigne stated that while they dealt with inventory destocking earlier in the year, they do not expect it to be an additional meaningful headwind. This dynamic is already embedded in the revised guidance provided for the balance of the year. Q: Can you elaborate on the 200 to 300 basis point category decline, specifically regarding volume vs. pricing and the US vs. international trends?A: Mark Lavigne noted that consumers are being more selective and value-seeking, which pressures dollars and mix. However, Energizer is winning, with US value growing 1.8% and volume up 5% on a category decline. He confirmed a pricing headwind in Q3 but expects pricing to be neutral in Q4. The company is not assuming the consumer improves but is managing to win with consumers where they are today. Q: How should we think about the cost outlook, including commodity pressures and the impact on margins?A: John Drabik, CFO, stated they have done a good job getting costs out of the system, with Q4 gross margin expected to be in the low 40s, a "clean" number without IEEPA credits. He highlighted that free cash flow will be bolstered by the completion of Project Momentum, reduced CapEx (targeting ~1% of net sales or $30 million in savings), and the collection of IEEPA tariff recoveries, with $11 million already collected and $53 million remaining. Q: Was the category slowdown stable during the quarter, and can you comment on the split between price and volume? Also, can you provide color on a competitor's dramatic volume declines?A: Mark Lavigne declined to comment on competitors but noted the consumer pressure accelerated through the quarter. He stated the weakness is split between promotional activity and volume erosion. John Drabik added that for Q4, pricing is expected to be neutral to slightly positive for Energizer. Q: Is there anything structural happening in the battery category, such as a push towards battery-free technologies?A: Mark Lavigne firmly stated there is nothing structural going on. The foundational health of the category is intact, with stable device usage and increased frequency due to higher power requirements. The current scanner data reflects consumer caution and value-seeking behavior, not a structural decline. Q: Are there any nuances to holiday shipment timing for Q4 and Q1 of fiscal '27?A: Mark Lavigne confirmed that any known holiday timing effects are already built into the current guidance, which anticipates the back half of the year to be flat to up 1%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Energizer Holdings (ENR) came out with quarterly earnings of $0.75 per share, missing the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -12.79%. A quarter ago, it was expected that this battery and personal care products company would post earnings of $0.47 per share when it actually produced earnings of $0.94, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Energizer, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $734.1 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.44%. This compares to year-ago revenues of $725.3 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Energizer shares have added about 6.2% since the beginning of the year versus the S&P 500's gain of 11%. While Energizer has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Energizer was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.44 on $858.01 million in revenues for the coming quarter and $3.56 on $3.02 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Warby Parker Inc. (WRBY), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has been revised 2.9% lower over the last 30 days to the current level. Warby Parker Inc.'s revenues are expected to be $237.94 million, up 10.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Energizer Holdings, Inc. (ENR) : Free Stock Analysis Report Warby Parker Inc. (WRBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research