What Happened?
Shares of battery and lighting company Energizer (NYSE:ENR) jumped 7.6% in the afternoon session after the stock appeared to rebound from a 52-week low set in the prior session, a drop that followed several analyst price target cuts.
The previous day's decline was prompted by analyst responses to the company's weak guidance. Canaccord Genuity lowered its price target after Energizer's earnings and adjusted gross profit missed expectations. Morgan Stanley also reduced its price target, citing weaker-than-expected fiscal guidance. Concurrent with the stock's recovery, Energizer's leadership team presented at the Morgan Stanley Global Consumer & Retail Conference, where they discussed the company's financial performance and strategic direction with analysts.
Is now the time to buy Energizer? Access our full analysis report here.
What Is The Market Telling Us
Energizer’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 5.8% on the news that the stock's negative momentum continued as the company's fourth-quarter profits fell short of investor expectations and it issued a cautious outlook for the next fiscal year.
Energizer's adjusted earnings per share dropped by 14% to $1.05, which was significantly below Wall Street's estimates of $1.16. While revenue increased slightly, net income declined by 26.7%. Looking ahead, the company projected adjusted earnings per share for fiscal 2026 to be between $3.30 and $3.60. Management also warned of a difficult first quarter, forecasting a high-single-digit decline in organic net sales. The company cited several challenges, including tariff headwinds, soft consumer demand, and pressure on its profit margins, which contributed to the weaker-than-expected results and guidance.
Energizer is down 47% since the beginning of the year, and at $18.34 per share, it is trading 53% below its 52-week high of $39.02 from December 2024. Investors who bought $1,000 worth of Energizer’s shares 5 years ago would now be looking at an investment worth $425.72.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.