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Energizer Stock Drops on Q4 Miss and Soft Q1 Outlook as Analysts Lower Targets

Management is extending its cost‑savings program to blunt tariff costs and integrate the APS unit.

Overview

  • Energizer posted adjusted EPS of $1.05 versus $1.12 expected on revenue of $832.8 million, with organic sales down 2.2% and volumes off 2.9%.
  • Adjusted gross margin fell 370 basis points to 38.5% due to higher input and logistics costs, production inefficiencies from network rebalancing, and the lower‑margin APS business.
  • The company guided first‑quarter adjusted EPS to $0.20–$0.30 and projected a GAAP loss of $0.08–$0.09 per share, citing temporary tariff costs and mitigation timing.
  • Shares sank roughly 18–19% on Tuesday after the report and were recently lower again on Wednesday, trading around $18.41, down about 5.4%.
  • Project Momentum, which has delivered over $200 million in savings, will be extended into a fourth year, and management reiterated FY2026 adjusted EPS guidance of $3.30–$3.60, broadly in line with Street estimates; Morgan Stanley cut its target to $22 and Canaccord to $20.