Energizer Holdings, Inc. (ENR) reported fourth-quarter earnings on Tuesday that fell short of expectations, and the guidance that followed was even worse.
The battery and auto care products company posted adjusted earnings per share of $1.05, missing the analyst consensus estimate of $1.12. On a brighter note, quarterly sales came in at $832.80 million, up 3.4% year over year and ahead of the Street's $827.962 million forecast.
CEO Mark LaVigne tried to put a positive spin on things: "We adjusted quickly, found opportunities, and executed with discipline to deliver a strong year."
But then came the guidance that really spooked investors. Energizer expects first-quarter adjusted earnings per share of just 20 cents to 30 cents, dramatically below the 70-cent analyst estimate. Even more concerning, the company anticipates a GAAP loss of 8 to 9 cents per share for the quarter, a stark contrast to the 70-cent profit Wall Street had been expecting.
The market reacted swiftly. Energizer shares tumbled 5.4% to trade at $18.41 on Wednesday.
Following the earnings announcement, analysts wasted no time adjusting their outlooks on the stock.
Morgan Stanley analyst Dara Mohsenian maintained an Equal-Weight rating on Energizer but slashed the price target from $28 down to $22. Meanwhile, Canaccord Genuity analyst Brian McNamara kept his Hold rating but cut his price target even more aggressively, dropping it from $29 to $20.
The downgrades reflect growing concern about the company's near-term prospects, despite management's upbeat messaging about the full-year performance.
