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Investing.com - Morgan Stanley reiterated an Equalweight rating on Energizer Holdings stock (NYSE:ENR) with a $21.00 price target following the company’s fiscal third-quarter earnings miss and lowered full-year guidance. Despite the near-term challenges, InvestingPro data suggests the stock is undervalued based on its Fair Value analysis, with shares trading at a low P/E ratio of 7.67. The stock has declined 20% over the past year to its current price of $20.18.

Energizer posted fiscal third-quarter earnings per share of $0.75, missing the $0.82 consensus estimate by 9%. The company reported a 5.4% EBITDA miss driven by gross margin pressure of approximately 120 basis points and operating margin weakness of roughly 100 basis points versus consensus expectations.

Volume increased 4.1% year-over-year, with market share gains in Batteries & Lights backed by distribution gains and new products, as well as Auto Care share gains fueled partially by higher North American refrigerant distribution. Pricing declined 1.4% from increased Batteries & Lights promotions amid a challenging industry environment and Auto Care mix shifts.

The company lowered fiscal 2026 guidance to the lower end of prior ranges from the high end, now expecting organic sales growth at low-single-digit decline versus roughly flat previously. Energizer moved its fiscal 2026 EBITDA outlook to the lower end of $580 million to $610 million versus the $608 million consensus and EPS to the low end of $3.30 to $3.60 versus the $3.48 consensus. While the guidance cut pressures the stock, the company maintains a significant dividend yield of 5.68%. For deeper insights, investors can access ENR’s comprehensive Pro Research Report on InvestingPro, one of 1,400+ US equities covered with expert analysis and actionable intelligence.

Adjusted fiscal third-quarter gross margin came in 120 basis points below expectations and declined roughly 200 basis points year-over-year excluding prior-year catch-up production credits. The pressure stemmed from 140 basis points of unfavorable mix and 80 basis points from pricing and increased promotions, partially offset by 20 basis points from other items including foreign exchange.

In other recent news, Energizer Holdings, Inc. reported its third-quarter earnings, which did not meet analyst expectations. The company announced results that were below projections, contributing to a decline in its stock. Additionally, Energizer Holdings provided guidance that was considered weak by market observers. These developments have drawn attention from investors and analysts alike. The earnings miss has prompted discussions about the company’s future performance. While the stock’s movement was noted, the focus remains on the earnings and revenue results. Analysts are closely monitoring the situation to assess the company’s financial health and potential strategies moving forward.

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