Energizer Holdings (NYSE:ENR) shares plunged nearly 5% yesterday after the company reported its Q1 results, with EPS coming in at $0.72, missing the Street estimate of $0.77. Revenue was $765.1 million, worse than the Street estimate of $789.38 million.
Organic growth was (5.4%), missing the Street expectations of (1.8%). Auto Care posted organic growth of (10.2%), notably below the Street estimate of (2.9%).
Despite a softer-than-expected topline, gross margin performance was strong, growing 150 bps year-over-year and coming in 150 bps ahead of consensus expectations. The expansion was driven by pricing initiatives, $6.5 million in savings from Project Momentum, and an accretive impact from exiting a lower margin business, but was offset by higher material and ocean freight costs and FX impact.