What Happened?
Shares of personal care company Edgewell Personal Care (NYSE: EPC) fell 22% in the afternoon session after the company reported disappointing third-quarter financial results and cut its full-year outlook. The consumer products maker posted third-quarter revenue of $627.2 million, a 3.2% decrease from the same period last year, missing analyst estimates. Adjusted earnings per share also came in below expectations at $0.92. Edgewell pointed to a challenging Sun Care season, especially in North America, as the primary reason for the slump. As a result, the company lowered its full-year earnings forecast to approximately $2.65 per share, a significant reduction from its previous guidance. This combination of a quarterly miss and a weaker outlook for the year ahead prompted a sharp negative reaction from investors.
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What Is The Market Telling Us
Edgewell Personal Care’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Edgewell Personal Care and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 13% on the news that the company reported underwhelming fourth-quarter results. Sales declined relative to the previous year and barely met expectations. Earnings also fell below expectations. The weak growth was attributed to lower volumes, and promotional efforts also led to weaker pricing. This likely fed into margins as profits fell, and EBITDA guidance for the next quarter only came in roughly in line. Overall, this was a weaker quarter.
Edgewell Personal Care is down 42.5% since the beginning of the year, and at $19.26 per share, it is trading 52.1% below its 52-week high of $40.22 from August 2024. Investors who bought $1,000 worth of Edgewell Personal Care’s shares 5 years ago would now be looking at an investment worth $677.45.
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