Truist has revised its price target for Energizer (ENR, Financial), reducing it from $40 to $30 while maintaining a Buy rating on the stock. This adjustment follows the company's second-quarter earnings report, which fell short of expectations, alongside guidance that also disappointed compared to consensus estimates. Despite these short-term challenges, Truist maintains an optimistic outlook, believing that the battery sector is reverting to its dependable position as a consistent source of high free cash flow within the consumer staples category.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Energizer Holdings Inc (ENR, Financial) is $29.86 with a high estimate of $40.00 and a low estimate of $25.00. The average target implies an upside of 35.93% from the current price of $21.97. More detailed estimate data can be found on the Energizer Holdings Inc (ENR) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Energizer Holdings Inc's (ENR, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Energizer Holdings Inc (ENR, Financial) in one year is $31.18, suggesting a upside of 41.95% from the current price of $21.965. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Energizer Holdings Inc (ENR) Summary page.
ENR Key Business Developments
Release Date: May 06, 2025
- Organic Sales Growth: Up nearly 1.5% for the quarter.
- Adjusted Earnings Per Share (EPS): $0.67, at the upper end of the guided range.
- Battery Business Growth: 3% organic growth in the quarter.
- Auto Business Decline: Roughly 2.5% organic decline due to timing shift in refrigerant shipments.
- Adjusted Gross Margin: Increased by 30 basis points to 40.8%.
- Adjusted SG&A: 18.8% of net sales, with a $10.6 million increase.
- Interest Expense: $38 million, improved from the prior year.
- Adjusted EBITDA: $140.3 million.
- Free Cash Flow: Declined by $44.1 million year-over-year.
- Full Year Revenue Outlook: Flat to up 2% for reported and organic net sales.
- Full Year Gross Margin Outlook: Expected to be up 50 basis points.
- Full Year Adjusted EPS Outlook: $3.30 to $3.50 per share.
- Free Cash Flow as Percentage of Net Sales: Expected to be 6% to 8% for the full year.
- Debt Paydown: Approximately $100 million expected for the full year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Energizer Holdings Inc (ENR, Financial) reported a fourth consecutive quarter of organic sales growth, with a 1.5% increase in Q2.
- The company's battery business showed strong performance, growing 3% organically, supported by distribution wins in the U.S. and international markets.
- Gross margins expanded by 30 basis points to 40.8%, driven by Project Momentum savings.
- Energizer Holdings Inc (ENR) successfully refinanced its $500 million revolving credit facility and extended the maturity of its Term Loan B, maintaining similar rates.
- The launch of the Podium Series in the Auto Care segment is progressing well, contributing to a 5.5% organic growth in the appearance business.
Negative Points
- Reported net sales were flat, with the Auto Care segment experiencing a 2.5% organic decline due to a shift in refrigerant shipments.
- Free cash flow declined by $44.1 million year-over-year, impacted by investments in inventory and capital expenditures.
- The company faces challenges from proposed tariffs, with a potential $150 million headwind, primarily from China tariffs.
- Consumer sentiment has shifted towards value, with increased caution in spending, potentially impacting demand.
- Energizer Holdings Inc (ENR) has tempered its outlook for the remainder of the year due to macroeconomic uncertainties and consumer confidence issues.
