Energizer’s stock drops after adjusted profit falls short, weighed by COVID-19-related costs

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Shares of Energizer Holdings Inc. tumbled 8.4% in premarket trading Thursday, after the battery maker reported a fiscal fourth-quarter profit that fell short of expectations, while revenue rose above forecasts. The company said that while demand for batteries remained elevated amid the COVID-19 pandemic and the auto care business improved, a continued focus on employee health and safety and meeting needs of customers resulted in higher costs and lower earnings. “We expect the increased costs related to COVID-19 will be substantially reduced by the end of the first quarter of fiscal 2021,” said Chief Executive Alan Hoskins. For the quarter to Sept. 30, Energizer swung to a net loss of $55.6 million, or 81 cents as share, from net income of $41.9 million, or 61 cents a share, in the year-ago period. Excluding non-recurring items, such as losses on debt extinguishment and acquisition costs, adjusted earnings per share fell to 59 cents from 93 cents, and missed the FactSet consensus of 81 cents. Revenue rose 6.1% to $763.0 million, above the FactSet consensus of $747.2 million. The stock has lost 6.1% year to date through Wednesday, while the S&P 500 has climbed 10.6%.
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