Edgewell Personal Care Q1 sales, adjusted EPS beat expectations

Overview

• Consumer products firm's fiscal Q1 sales rose 1.9%, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company completed $340 mln divestiture of Feminine Care business

Outlook

• Edgewell expects fiscal 2026 net sales to increase 0.5% to 3.5%

• Adjusted EPS forecast revised to $1.70-$2.10 for fiscal 2026

• Adjusted EBITDA expected between $245 mln and $265 mln for fiscal 2026

Result Drivers

• DIVESTITURE IMPACT - Completion of Feminine Care business divestiture expected to positively impact financial outlook, per CEO Rod Little

• ORGANIC SALES DECLINE - Organic net sales decreased 0.5%, with North American growth offset by international declines, notably in Japan

• GROSS MARGIN PRESSURE - Gross margin decreased due to core inflation, tariffs, and unfavorable mix, despite productivity savings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy."

• Wall Street's median 12-month price target for Edgewell Personal Care Co is $20.50, about 1.2% above its February 6 closing price of $20.75

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPn2NBdDHa

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