Energizer Holdings (ENR) saw its stock plummet 6.16% in pre-market trading on Tuesday following the release of its fourth-quarter earnings report and disappointing guidance for the upcoming quarter. The battery and lighting company's financial results and outlook paint a picture of near-term challenges despite some positive elements in its performance.

For the fourth quarter, Energizer reported adjusted earnings per share of $1.05, falling short of analyst estimates of $1.12. This represents a 13.93% decrease compared to the same period last year. However, the company's quarterly sales of $832.8 million slightly exceeded expectations, showing a 3.36% increase year-over-year.

The primary driver behind the stock's sharp decline appears to be Energizer's weak guidance for the first quarter of fiscal 2026. 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. This outlook suggests significant headwinds in the near term, as Energizer disclosed it is "operating through a period of transition," with Q1 2026 more heavily affected by temporary tariff costs and mitigation efforts.

Furthermore, Energizer's full-year 2026 adjusted EPS guidance of $3.30 to $3.60 falls below the FactSet consensus estimate of $3.72, indicating that the challenges may persist beyond the first quarter. Despite these setbacks, the company 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.