Key Takeaways
Edgewell Personal Care Co. (NYSE: EPC) reported fiscal second-quarter earnings and revenue that surpassed analyst expectations, sending its shares up over 2 percent in trading.
"We delivered a strong second quarter, with results ahead of our expectations, driven by improved execution and innovation that is resonating with consumers," Rod Little, President and Chief Executive Officer, said in a statement. Little highlighted the continued momentum in brands like Cremo, Hawaiian Tropic, and Billie.
For the quarter ended March 31, the Shelton, Connecticut-based company posted adjusted earnings per share of $0.60 on revenue of $519.5 million. The performance exceeded consensus estimates that called for EPS of $0.44 on revenue of $516.41 million. Compared to the prior year, adjusted EPS was down from $0.69, while revenue saw a slight 0.6 percent increase.
Despite the top- and bottom-line beat, the company's organic net sales decreased by 2.4 percent, primarily driven by a 4.8 percent decline in North America. This was partially offset by 1.0 percent growth in international markets. The Wet Shave segment saw its segment profit fall 27.7 percent, while Sun and Skin Care segment profit decreased 6.3 percent.
Edgewell reaffirmed its full-year fiscal 2026 outlook, maintaining its adjusted EPS forecast in the range of $1.70 to $2.10 and its organic net sales outlook between a 1.0 percent decrease and a 2.0 percent increase.
The company returned $22.9 million to shareholders during the quarter, consisting of $15.8 million in share repurchases and $7.1 million in dividends. The board also declared a quarterly cash dividend of $0.15 per share.
The results suggest Edgewell's cost-management and innovation efforts are paying off, though the decline in organic sales in its home market remains a headwind. Investors will watch for a return to organic growth in North America, a key component of the company's strategic priorities for the remainder of the fiscal year.
This article is for informational purposes only and does not constitute investment advice.
