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Energizer (ENR) to Report Q3 Earnings: A Surprise in Store?

Energizer Holdings Inc. ENR is set to report third-quarter fiscal 2017 results on Aug 2. Last quarter, it posted a positive earnings surprise of 47.06%, with an average surprise of 21.55% over the trailing four quarters.

In the last reported quarter, revenues of $359 million missed the consensus mark of $366.5 million but grew 7.5% year over year.

Moreover, in the past year, the stock has lost 11.3% compared with the industry’s decline of 5%.

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 last year, Energizer acquired HandStands, a leading name in the car fragrance products space.

In second-quarter 2017, the company’s auto-care business contributed $29 million or 8.8% to total sales and $10 million to segment profit. Going ahead, management expects it to increase current fiscal’s net revenues by 5–6%, partly offset by forex fluctuations.

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

Earnings Whispers

Our proven model does not conclusively show that Energizer is likely to beat earnings 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 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 37 cents. 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 #2 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.

Kemet Corporation KEM has an Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vishay Intertechnology, Inc. VSH has an Earnings ESP of +6.06% and a Zacks Rank #1.

CGI Group Inc. GIB has an Earnings ESP of +4.23% and a Zacks Rank #2.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

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Energizer Holdings, Inc. (ENR): Free Stock Analysis Report
 
CGI Group, Inc. (GIB): Free Stock Analysis Report
 
Kemet Corporation (KEM): Free Stock Analysis Report
 
Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report
 
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