Energizer Holdings (ENR) saw its stock price plummet by 23.69% in Tuesday's trading session following the release of its fourth-quarter earnings report and disappointing guidance for the upcoming quarter and fiscal year. The sharp decline reflects investor concerns about the company's near-term challenges and softer consumer demand.

The battery and lighting company reported fourth-quarter adjusted earnings per share of $1.05, falling short of analyst estimates of $1.12 and representing a 13.93% decrease compared to the same period last year. Although quarterly sales of $832.8 million slightly exceeded expectations, showing a 3.36% increase year-over-year, the company's outlook for the future overshadowed this positive aspect.

Energizer's guidance for the first quarter of fiscal 2026 particularly alarmed investors. The company expects Q1 organic net sales to decline by high single digits and projects adjusted earnings per share to be in the range of $0.20 to $0.30, significantly below analyst expectations of $0.70. CEO Mark LaVigne cited "temporary tariff costs and mitigation efforts" as factors affecting the company's performance in the near term. Additionally, Energizer's full-year 2026 adjusted EPS guidance of $3.30 to $3.60 falls below the consensus estimate of $3.72, indicating that challenges may persist beyond the first quarter.

The company also reported softer consumer demand, primarily in North America, which contributed to a 2.2% decline in organic sales volumes for the fourth quarter. Despite these headwinds, Energizer remains optimistic about generating double-digit adjusted earnings per share growth over the remainder of the year following Q1, and expects organic net sales to be flat to slightly up in both its Batteries and Lights and Auto Care segments for fiscal 2026. However, the market's severe reaction suggests that investors are more focused on the near-term challenges than the potential for recovery later in the fiscal year.