What Happened?
Shares of battery and lighting company Energizer (NYSE:ENR) fell 17.7% in the afternoon session after the company reported third-quarter 2025 results that missed profit expectations and provided a bleak outlook for future sales and earnings.
Despite revenue of $832.8 million slightly beating analyst estimates with 3.4% year-over-year growth, the positives ended there. The company's adjusted earnings per share of $1.05 fell short of expectations by nearly 10%. More concerning for investors was the forward-looking guidance. Energizer projected its next quarter's revenue would be almost 9% below consensus estimates. The company also forecast that earnings for the upcoming 2026 fiscal year would miss expectations, signaling persistent challenges ahead. The results were further weakened by a 2.2% decline in organic sales, indicating softer consumer demand and overshadowing the top-line beat.
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What Is The Market Telling Us
Energizer’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for Energizer and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 24.6% on the news that the company reported third-quarter results that significantly beat analyst expectations and raised its full-year financial outlook.
The battery maker posted adjusted earnings of $1.13 per share, which demolished analyst estimates of around $0.62. Revenue also grew 3.4% to $725.3 million, beating Wall Street forecasts. The strong performance stemmed from a company initiative called "Project Momentum," which improved margins and operational efficiency. Energizer's adjusted gross margin improved to 44.8% from 41.5% a year ago. Following these results, the company raised its full-year guidance, forecasting adjusted earnings between $3.55 and $3.65 per share and adjusted EBITDA from $630 million to $640 million.
Energizer is down 43% since the beginning of the year, and at $19.74 per share, it is trading 49.9% below its 52-week high of $39.39 from December 2024. Investors who bought $1,000 worth of Energizer’s shares 5 years ago would now be looking at an investment worth $478.89.
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