SHELTON, Conn. - Edgewell Personal Care Company (NYSE: NYSE:EPC) today reported financial results for its second fiscal quarter of 2024, which ended on March 31, 2024.
The company announced an adjusted EPS of $0.88, surpassing the analyst estimate of $0.72. However, revenue for the quarter was slightly lower than expected at $599.4 million, compared to the consensus estimate of $606.74 million.
The company's GAAP EPS saw a significant increase of 95% from the prior year's quarter, while adjusted EPS grew by 57%. Despite the challenging operating environment, Edgewell achieved strong gross margin expansion, contributing to substantial growth in adjusted EBITDA and earnings per share.
Organic net sales, which exclude the impact of currency movements, saw a modest increase of 0.1%.
Rod Little, Edgewell's President and CEO, attributed the quarter's success to disciplined execution in cost productivity and strategic revenue management, which led to over 300-basis points of adjusted gross margin expansion.
Little also noted robust growth in the company's Right-to-Win portfolio, particularly in Sun Care and Grooming, as well as accelerated growth in international markets.
For the full fiscal year 2024, Edgewell now expects to deliver sales at the lower end of its previous outlook range and has raised its outlook for adjusted EPS and EBITDA. The updated guidance for FY2024 adjusted EPS is now set at $2.80-$3.00, reflecting a positive adjustment from the prior range of $2.65-$2.85.
The company ended the second quarter with $196.2 million in cash on hand and access to an additional $308.7 million revolving credit facility. Edgewell also returned $23.5 million to shareholders through share repurchases and dividends during the quarter.
In terms of stock performance, the company did not disclose the percentage movement following the earnings and guidance release. However, the positive earnings surprise and raised full-year guidance suggest a positive investor sentiment.
Edgewell's financial outlook for the remainder of the fiscal year appears optimistic as the company continues to navigate a volatile market environment with a focus on strategic growth and shareholder value.
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