MW Energizer cut its earnings outlook because of the consumer, not tariffs

By Tomi Kilgore

Stock sinks toward a record low as weakness in auto-care business offset strength in batteries, leading to a quarterly sales decline

Shares of Energizer Holdings Inc. were sinking toward a record low in early Tuesday trading, after the batteries and auto-care company cited an increasingly cautious consumer in providing a downbeat outlook.

While the recent tariff announcements added to uncertainties about the economy and a consumer slowdown, Energizer $(ENR)$ said that a combination of sourcing shifts and higher pricing has allowed it to "broadly offset the direct impact of tariffs."

But because of the effect worries about the economy are having on the consumer, the company expects adjusted earnings per share for the current fiscal third quarter to be 55 cents to 65 cents, which is well below the average analyst EPS estimate compiled by FactSet of 85 cents.

For fiscal 2025, the company cut its adjusted EPS guidance to $3.30 to $3.50 from $3.45 to $3.65.

The stock dropped 5.3% in premarket trading, to fall below the Sept. 30, 2022, record closing low of $25.14.

The company's downbeat outlook came after government data out last week showed that the U.S. economy contracted in the first quarter.

The company also reported revenue for the fiscal second quarter to March 31 that slipped 0.1% to $662.9 million from $663.3 million a year ago, while the FactSet consensus was for a rise to $669.5 million.

Batteries and lights revenue increased 1.5% to $488 million, above the average estimate of two analysts of $480.6 million. Meanwhile, auto-care revenue fell 4.1% to $174.9 million from $182.3 million, while expectations called for a rise to $189.6 million.

Net earnings for the quarter declined 12.7% to $28.3 million, while adjusted EPS, which excludes nonrecurring items, fell to 67 cents from 72 cents but matched the FactSet consensus.

The stock has tumbled 25.8% in 2025 through Monday, while the S&P 500 index SPX has slipped 3.9%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 06, 2025 08:12 ET (12:12 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.