Key Stats for Energizer Stock
- Price Change for Energizer stock: -18.5%
- $ENR Share Price as of Nov. 18: $19.44
- 52-Week High: $39.52
- $ENR Stock Price Target: $30.43
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What Happened?
Energizer (ENR) stock plunged over 18% on Tuesday, heading for its worst single-day decline ever, after the battery maker missed fourth quarter earnings expectations and issued shockingly weak guidance for the current quarter.
The company posted adjusted earnings of $1.05 per share, falling short of the $1.16 consensus estimate, while revenue came in at $832.8 million, slightly beating the $828 million analysts expected.
Energizer expects adjusted earnings between $0.20 and $0.30 per share, compared to analyst expectations of $0.73 per share. That represents a miss of roughly 60% at the midpoint, signaling significant near-term headwinds.
CEO Mark LaVigne blamed President Trump’s tariffs as a key factor pressuring results. “As we begin Fiscal 2026, we are operating through a period of transition, with the first quarter more heavily affected by temporary tariff costs and mitigation efforts,” he said in a statement.
For the full fiscal year 2025, Energizer delivered net sales growth of 2.3% to nearly $3 billion. Adjusted earnings per share increased 6% to $3.52, supported by organic growth, disciplined cost management, and manufacturing production credits from investments in U.S. production.
The company also returned $177 million to shareholders through dividends and buybacks, reducing outstanding shares by roughly 5%.
Despite these full-year achievements, the company faced mounting challenges as the year progressed.
Consumer demand softened late in the year, tariffs increased costs, and supply chains required rapid rebalancing.
Management responded by realigning the manufacturing footprint to minimize tariff exposure and executing pricing actions to protect margins.
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What the Market Is Telling Us About Energizer Stock
The collapse in Energizer stock reflects investor concern that near-term pain may be worse than expected, even if management insists the issues are temporary.
The first quarter will be “transitional,” management warned, reflecting challenging sales comparisons, tariff-related costs, and moderating consumer sentiment.
Beyond the tariff impact, the battery category itself is under pressure., given energizer expects the category to decline roughly 2% for the full year, with weakness in the first quarter where category value could drop 3% to 4%.
Management attributed this to softening consumer sentiment that accelerated from August through October, a trend many consumer companies have reported.
LaVigne explained that consumers are draining household inventory, skipping purchase cycles, and shifting channels to find better value.
While these behaviors are considered temporary, the company expects tighter inventory management from retail partners throughout fiscal 2026.
The timing of retail display placement also created headwinds, with some Q4 displays shifting into Q1.
One bright spot has been e-commerce, where Energizer’s business grew over 35% in Q4 and 25% for the full year.
The company expects 15% e-commerce growth in fiscal 2026, demonstrating strong execution in a critical channel. Management also noted that Energizer is gaining market share over 4-week, 13-week, and 52-week periods.
Looking past the difficult first quarter, management expects double-digit adjusted earnings per share growth over the final three quarters of the year.
This projection assumes the battery category stabilizes in the back half as the company laps softer comparisons from fiscal 2025.
Low single-digit top line growth and normalized gross margins, combined with savings from Project Momentum, should drive the earnings acceleration.
Project Momentum, a three-year cost savings initiative, has delivered over $200 million in savings to date and recovered 350 basis points in gross margin.
Management announced an extension into a fourth year focused on increased operational efficiency and integration of the Advanced Power Solutions acquisition.
On tariffs specifically, management repositioned the supply chain over the summer and fall to offset higher costs.
These moves created transitional operational inefficiencies that hit Q4 and will continue into Q1, but should fade as the quarter progresses.
The company also executed targeted pricing to preserve margins, though it’s taking a conservative approach to the full-year outlook by assuming current trade policies remain in place.
CFO John Drabik expects free cash flow to normalize in fiscal 2026 after a weaker fiscal 2025 driven by working capital investments in plastic-free packaging.
Energizer aims to pay down $150 million to $200 million in debt and has already reduced debt by $80 million in the first quarter.
For now, Energizer stock appears caught between near-term tariff and consumer headwinds versus management’s confidence that the second half will show meaningful improvement.
Whether investors believe that recovery story will determine if today’s selloff represents a buying opportunity or a sign of deeper problems ahead.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
