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What to Expect when Energizer (ENR) Reports Q1 Earnings?

Energizer Holdings Inc. (ENR) is set to report first-quarter fiscal 2017 results on Feb 1. Last quarter, it posted a positive earnings surprise of 8.00%. It has delivered an average positive earnings surprise of 34.24% over the trailing four quarters.

Moreover, in the past year, Energizer's shares have generated a positive return of 58.12% compared with the Zacks Consumer Product-Staples industry's gain of 2.88%.

Let's see how things are shaping up for this announcement.

Factors at Play

Energizer has been innovating its product portfolio, cutting down on costs and making strategic acquisitions to boost its financials. In July this year, Energizer acquired HandStands, a leading name car fragrance products space. Management expects the HandStands acquisition to boost fiscal 2017 results. For fiscal 2017, adjusted earnings per share are estimated to be in a band of $2.55 to $2.75 including 15 to 20 cents contribution from the HandStands business. The company now expects revenues to be up in mid-single digits with 5%-6% incremental contribution from HandStands,

However, stiff competition from regional players and forex volatility are emerging as big concerns for Energizer.

Also, management has cautioned that the first quarter will be marred by tougher year-over-year comparisons due to the timing of the holiday season last year and EcoAdvanced launch.

Energizer Holdings, Inc. Price and Consensus

Energizer Holdings, Inc. Price and Consensus | Energizer Holdings, Inc. Quote

Earnings Whispers

Our proven model does not conclusively show that Energizer is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: Earnings ESP for Energizer is -0.80%. This is because both the Most Accurate estimate stands at $1.24 while the Zacks Consensus Estimate is pegged at $1.25. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Energizer's Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Ranks #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a couple of companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming release:

Oclaro Inc. OCLR with an Earnings ESP of +10.53% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Qoravo Inc. QRVO with an Earnings ESP of +0.94% and a Zacks Rank #3.

Twilio Inc. TWLO with an Earnings ESP of +8.33% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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