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NEW YORK - Shares of Edgewell Personal Care Company (NYSE:EPC) plunged 13.2% after the personal care products maker reported first-quarter earnings that fell short of analyst expectations and provided weak full-year guidance.
Edgewell reported adjusted earnings per share of $0.07 for its fiscal first quarter ended December 31, 2024, missing the analyst consensus of $0.12. Revenue came in at $478.4 million, below estimates of $483.18 million and down 2.1% YoY. Organic net sales decreased 1.3% in the quarter.
The company cited currency headwinds and lower volumes as key factors impacting results. Unfavorable foreign exchange movements had a $0.17 negative impact on EPS in the quarter.
For fiscal year 2025, Edgewell now expects adjusted EPS to be towards the lower end of its previously provided range of $3.15 to $3.35, reflecting increased anticipated negative foreign currency impacts. This outlook compares to the analyst consensus of $3.18.
"We started the fiscal year with solid first quarter results that were operationally as we expected," said CEO Rod Little. "Our performance continues to demonstrate traction against our broader strategic priorities though the strengthening US dollar significantly impacted our top and bottom-line results for the quarter, and we expect further additional headwinds for the year."
The company maintained its organic net sales growth forecast of 1% to 3% for fiscal 2025 but now expects currency to negatively impact reported net sales by 160 basis points, compared to its previous expectation of a 70 basis point positive impact.
Edgewell ended the quarter with $176 million in cash and returned $38 million to shareholders through share repurchases and dividends. The board declared a quarterly dividend of $0.15 per share.
Truist analyst Bill Chapell, commenting on the earnings report, stated, "One step forward, one step back. Unfortunately for EPC, progress they’ve made against productivity initiatives and international growth is overshadowed by FX headwinds and declines in North America. With pricing and volumes both under pressure in the U.S. and guidance including a much larger hit from FX ($0.36 est. headwind to adj. EPS vs. $0.18 prior) we understand why some investors may stay on the sidelines until the top line sees stabilization and there’s more neutral currency dynamics." However, Truist maintains a buy rating.
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