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Energizer profit beats view; shares jump
CHICAGO (Reuters) - Energizer Holdings Inc (ENR.N) posted higher-than-expected quarterly earnings, helped by the debut of its new Schick Hydro razor and a jump in shaving cream sales, sending its shares up more than 8 percent.
The company also said on Tuesday it would evaluate the mix of products, investment initiatives and other factors in its household products line as its batteries category declines. Spokeswoman Jacqueline Burwitz said she could not clarify further what changes might be made in the category.
"They came in better than I expected both from a sales side and from a profitability side," said Morningstar analyst Lauren DeSanto. "From the household products side of things, it's more difficult to see where that's going."
Profitability in the household category is pressured by big names like Procter & Gamble Co (PG.N), DeSanto said. Energizer said products that increasingly rely on built-in rechargeable batteries hurt sales as well.
"It's really messy but, with that in mind, I think the general excitement is that there are some early glimmers of stability showing through," DeSanto said.
Net earnings for the third quarter that ended on June 30, rose to $104.0 million, or $1.47 per share, from $72.7 million, or $1.13 per share, a year earlier.
Excluding items, earnings per share were $1.50, compared with the analysts' average estimate of 96 cents, according to Thomson Reuters I/B/E/S.
Net sales rose to $1.08 billion from $997.5 million.
Energizer touted the successful introduction of its new razor in April and its Edge and Skintimate shaving cream brands as contributors to higher sales during the quarter. P&G also launched its latest salvo in the razor wars, the Fusion ProGlide, earlier this year.
Shares of Energizer were up about 8.1 percent, or $4.52, at $59.77 in afternoon trading.
(Reporting by Martinne Geller and Emily Stephenson; Editing by Lisa Von Ahn and Maureen Bavdek)
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