Edgewell Personal Care (NYSE:EPC) announced its quarterly earnings on Monday, revealing a loss of $0.16 earnings per share (EPS). This figure slightly surpassed analysts’ consensus estimates of a loss of $0.18, as reported by Zacks. The company generated $422.80 million in revenue during the quarter, falling short of expectations of $476.48 million.
Despite the challenges, Edgewell demonstrated a positive return on equity of 7.16%, although it reported a negative net margin of 1.76%. Revenue increased by 1.9% compared to the same quarter last year, when the company posted an EPS of $0.07. In response to the current economic landscape, Edgewell updated its fiscal year 2026 guidance, projecting an EPS range of $1.70 to $2.10.
Key Developments and Strategic Focus
During the conference call, management highlighted significant strategic moves, including the completion of the sale of its FemCare business to Essity. This divestiture aims to sharpen the company’s focus on its core categories: shave, sun, skincare, and grooming. Management remarked that this change is “favorable to our previous outlook,” despite an estimated near-term impact of $0.44 on adjusted EPS and $44 million on adjusted EBITDA.
The first quarter results showed modest strength in North America, particularly due to early sun-care orders, which helped offset some international weaknesses. The company achieved approximately 240 basis points of gross productivity savings, supporting its profitability.
However, profitability and cash flow faced pressure during the quarter. The GAAP diluted net loss from continuing operations was $(0.63) per share, with adjusted EBITDA at $25 million and net cash used by operating activities amounting to $125.9 million. Edgewell maintains its fiscal 2026 outlook for continuing operations, expecting organic net sales to range from down 1% to up 2% (excluding a ~150 bps foreign exchange tailwind), alongside the previously mentioned adjusted EPS and EBITDA figures.
Management also noted a projected net tariff impact of approximately $25 million and an increase in advertising and promotional expenses, which are expected to represent around 12.3% of sales.
Stock Performance and Analyst Ratings
Shares of Edgewell Personal Care opened at $20.56 on Wednesday, reflecting a market capitalization of $960.56 million. The company currently has a P/E ratio of -24.19 and a beta of 0.61. Over the past year, the stock has fluctuated between a low of $15.88 and a high of $32.96. The 50-day and 200-day moving averages stand at $18.19 and $19.91, respectively.
A recent analysis from various research firms indicates mixed sentiments about Edgewell’s stock. The Royal Bank of Canada reiterated an “outperform” rating, while Morgan Stanley lowered its price target from $23.00 to $21.00 and assigned an “equal weight” rating. Barclays increased its target price from $19.00 to $21.00, also maintaining an “equal weight” rating. In contrast, Weiss Ratings issued a “sell (d)” rating on the stock. Overall, three analysts have given a Buy rating, four have a Hold rating, and one has assigned a Sell rating, resulting in a consensus rating of “Hold” and an average target price of $23.33.
Institutional investors have shown strong interest in Edgewell Personal Care, with several firms increasing their stakes in the company. For instance, Tower Research Capital LLC raised its holdings by 67.4% in the second quarter, now owning 4,201 shares valued at $98,000. Other notable increases in holdings came from iSAM Funds UK Ltd and PNC Financial Services Group Inc., reflecting a robust commitment from institutional investors, who collectively own approximately 91.91% of the company’s stock.
Founded in 2015 and headquartered in Shelton, Connecticut, Edgewell Personal Care specializes in consumer products related to personal care, sun care, shaving, and feminine care solutions. The company emerged from a spin-off of Energizer Holdings’ personal care division, listing its shares on the New York Stock Exchange under the ticker “EPC.” It offers an array of well-known brands, focusing on everyday personal grooming and protection needs.
