Battery and lighting company Energizer (NYSE:ENR) reported revenue ahead of Wall Street’s expectations in Q4 CY2024, with sales up 2.1% year on year to $731.7 million. Its non-GAAP profit of $0.67 per share was 3.6% above analysts’ consensus estimates.
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Energizer (ENR) Q4 CY2024 Highlights:
- Revenue: $731.7 million vs analyst estimates of $727.1 million (2.1% year-on-year growth, 0.6% beat)
- Adjusted EPS: $0.67 vs analyst estimates of $0.65 (3.6% beat)
- Adjusted EBITDA: $140.7 million vs analyst estimates of $134 million (19.2% margin, 5% beat)
- Management reiterated its full-year Adjusted EPS guidance of $3.55 at the midpoint
- EBITDA guidance for the full year is $635 million at the midpoint, above analyst estimates of $624.9 million
- Operating Margin: 4.1%, down from 9.7% in the same quarter last year
- Free Cash Flow Margin: 10.5%, down from 21.3% in the same quarter last year
- Organic Revenue rose 3.8% year on year (-7.4% in the same quarter last year)
- Market Capitalization: $2.45 billion
"We are very pleased to have started fiscal 2025 with a strong top and bottom line performance as we continued to execute our strategies successfully," said Mark LaVigne, Chief Executive Officer.
Company Overview
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.
Household Products
Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.
Sales Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $2.90 billion in revenue over the past 12 months, Energizer carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.
As you can see below, Energizer’s revenue declined by 1.3% per year over the last three years, showing demand was weak. This is a rough starting point for our analysis.
This quarter, Energizer reported modest year-on-year revenue growth of 2.1% but beat Wall Street’s estimates by 0.6%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection indicates its newer products will fuel better top-line performance, it is still below the sector average.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Energizer’s products has barely risen over the last eight quarters. On average, the company’s organic sales have been flat. 
In the latest quarter, Energizer’s organic sales rose by 3.8% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum.
Key Takeaways from Energizer’s Q4 Results
We enjoyed seeing Energizer exceed analysts’ organic revenue estimates this quarter. On the other hand, its EPS guidance for next quarter fell short of Wall Street’s estimates. The market seemed to focus on the negatives, and the stock traded down 1.8% to $33.30 immediately after reporting.
Is Energizer an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.