ENR: Energizer Stock Soars on Company Split News

by Christopher Freeburn | April 30, 2014 9:18 am

On Wednesday, Energizer Holdings (ENR[1]) posted quarterly earnings that topped estimates[2] 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.

More Stocks on the Move:

• HPQ: H-P Stock Heads Higher on Analyst Upgrade[4]
• HLF: Herbalife Beats Street, Cuts Dividend[5]
• DECK: Deckers Outdoors Stock Surges After Beating Street[6]

Source URL: https://investorplace.com/2014/04/enr-energizer-stock-soars-company-split-news/

---