News
John Smaug
- November 15, 2023
Shares of Energizer took a nosedive following multiple analyst downgrades, all stemming from the company's underwhelming 2024 guidance. After an initial boost, the stock plummeted 8.3% to $33.14 during early Wednesday trading, erasing the gains made the previous day. Year-to-date, shares remain in negative territory.
Energizer initially reported better-than-expected adjusted earnings and revenue, illustrating positive performance. However, the company delivered a blow by cautioning that it doesn't anticipate any organic revenue growth in fiscal 2024. Forecasts predict a decline of 6% to 8% in organic revenue during the first quarter, starting from October 1. This projection is attributed to anticipated category trends and the forward shift of certain holiday orders.
JPMorgan analysts responded to this weak guidance by downgrading Energizer's stock to an underweight rating. In a note on Wednesday, they expressed concerns about potential further downside risks tied to the company's flat fiscal 2024 volume outlook.
Morgan Stanley and RBC Capital also joined the ranks, downgrading Energizer's stock on the same day.
It remains to be seen how Energizer will navigate these challenges, but for now, investors are left reeling from the unanticipated change in fortune.
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