What Happened?
Shares of battery and lighting company Energizer (NYSE:ENR) jumped 24.6% in the afternoon session after 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.
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What Is The Market Telling Us
Energizer’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Energizer and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 5.4% after the release of strong U.S. economic data that pointed to a resilient consumer, lifting stocks across the consumer staples sector.
The broader market rallied after new data showed unexpected strength in the U.S. economy, easing investor concerns about a potential recession. Reports indicated that consumer spending at retailers was stronger than anticipated, and unemployment claims fell, signaling a steady job market. This combination of robust retail sales and a solid labor market suggests consumers have more capacity for spending on household goods. For a company like Energizer, which manufactures essential items like batteries, this is a positive sign of stable demand.
Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
Energizer is down 20.6% since the beginning of the year, and at $27.47 per share, it is trading 30.3% 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 $518.50.
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