On Wednesday, Energizer Holdings (ENR) posted quarterly earnings that topped estimates and announced plans to separate its battery and personal care businesses. Investors were enthusiastic about the news, sending ENR stock up more than 17% in pre-market trading.
Energizer stock jumped after ENR posted fiscal second quarter net income of $98.5 million, up 16% from the prior-year period. Adjusted EPS came in at $1.88 a share, handily beating Wall Street, which expected a profit of $1.71 per share. Sales of $1.06 billion slipped 3.1% from the year-ago period, and fell short of the $1.08 billion that analysts had forecast, Reuters noted.
ENR said its household products and personal care units would become separate publicly-traded companies. It anticipates the tax-free spin-off to be completed by the end of this year. ENR’s household products division — which includes its EveryReady and Energizer batteries — will be headed by Alan Hoskins when the split is complete. The unit generated $1.9 billion in revenue during the 12 months ending in March, Reuters notes.
The personal care business — which includes the Wilkinson Sword shavers and Banana Boat sunscreen brands — reported revenue of $2.6 billion during the year ending in March. ENR’s current CEO Ward Klein will become the personal care unit’s executive chairman after the split.
On Tuesday, ENR stock closed at $97.85 per share.
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