Edgewell Personal Care Plunges 14% on Revenue Miss

Edgewell Personal Care (EPC) reported third-quarter revenue of $627.2 million, falling short of analysts' predictions of $653.63 million, leading to a 14% drop in pre-market trading.

Edgewell Personal Care's third-quarter earnings report revealed a significant shortfall in both revenue and earnings per share (EPS), missing analyst expectations. The company's net sales declined by 3.2% year-over-year, falling short of the consensus estimate of $663 million. Organic net sales also decreased by 4.2%, indicating underlying weakness in demand. The adjusted EPS of $0.92 was 7.5% below the projected $1.02, reflecting additional pressures from restructuring or one-time costs.

The company revised its full-year guidance, though specific figures were not detailed in the press release. This uncertainty contributed to the negative sentiment, as investors had anticipated stronger performance. The immediate pre-market sell-off suggests that the revenue and profit miss were not priced in, aligning with broader market trends where consumer staples companies facing declining sales face heightened scrutiny.

Edgewell operates in Wet Shave, Sun and Skin Care, and Feminine Care categories, which may be experiencing competitive or macroeconomic pressures. Despite lower sales, the adjusted EPS still suggests some resilience in profitability, likely due to cost controls. Analysts estimate Q4 revenue at $540.9 million and EPS at $1.00, with the company's performance in the holiday season and potential improvements in organic sales trends being crucial factors.