Energizer has announced revenues of $ 725.3 million, which means an increase of 3.4 percent. year on year and A result higher than a consensus by over $ 20 million. Net profit amounted to $ 153.5 million, and PLN $ 2.13 profit (EPS) After accounting corrections, the corrected EPS reached $ 1.13. In relation to the forecasted $ 0.62
Managers emphasized the growth of the gross margin to 44.8 percent. (after correction). This is due to both the “Project Momentum” savings program and federal production loans for batteries under Inflation Reduction Act.
By the way, the company raised a year -round profit forecast. Now he expects the corrected EPS in the range of 3.55 – $ 3.65. (earlier $ 3.30 – $ 3.50) and EBITDA $ 630 – $ 640 million, also anticipating sales increase
Why the course fired
The scale of the “positive surprise” was large – EPS exceeded the average expectations of analysts by about 80 percent.
Special offer
In addition, the market appreciated better profit quality. The gross margin has increased not only thanks to one -off loans, but also thanks to real savings and integration of the recently bought Belgian company APS NV, which added $ 20.8 million. revenues in the quarter.
Increasing the forecast also calmed the fears of slower battery and auto care products, showing that the management can see the space for a profit increase of 7-10 percent. annually.
High one -time course jump is Award for unexpectedly good data, but it can be corrected equally quicklyif the next quarters do not confirm the trend. So let's pay attention to:
- Margin durability: Part of the improvement comes from federal tax loans that can expire or change the conditions.
- VS VS PRICE: Organic sales itself grew symbolically, and the increase in revenues was mainly driven by a new acquisition and favorable exchange rate.
- Debt: The company still has over $ 3 billion. net debt, so any increase in interest rates or a decrease in free cash flows can increase the pressure on the balance.
Is it worth recharging the wallet with this battery?
Today's rally shows how much the course can react when a company from the daily goods sector It will surprise you positively in profit and at the same time raise the forecasts. However, for a long -term investor, the next quarters will be crucial: maintaining a higher margin without one -off tax benefits, an uninterrupted decline in debt and further increase in volumes.
If these conditions are met, today's reflection may only be the beginning of a longer upward trend – Otherwise, euphoria can evaporate quickly.
Note: The valuations included in the text are only informative and do not constitute a recommendation for the purchase or sale of financial products.
