Energizer CEO: People have more devices needing batteries, and are using them longer

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Shares of Energizer Holdings Inc.
ENR,
+1.49%
seesawed to a gain of 1.5% in afternoon trading Monday, in the wake of the battery and lighting company’s fiscal third-quarter earnings report. The stock had dropped as much as 2.2% soon after the open, before reversing to a gain of 3.5% in morning trading before paring gains. Earlier, the company reported earnings that beat expectations and raised its full-year revenue outlook, but cut its outlook for free cash flow and gross margin, citing increasing inflationary cost pressures. On the post-earnings call with analysts, Chief Executive Mark LaVigne said he had “confidence” that growth was driven by changes in consumer behaviors that he believes will be sustained, and should bode well for long-term growth in the battery category. Two reasons for that confidence, LaVigne said, was that devices owned per household were up in the mid-single digit percentage range in the U.S. during quarter, and the amount of time those devices were used were also increased. “As a result, consumer are replacing batteries more frequently and their buying behavior reflects these trends with an increase in purchase frequency and greater spending per trip,” LaVigne said, according to a FactSet transcript. The stock has dropped 18.1% over the past three months, while the S&P 500
SPX,
-0.12%
has gained 4.7%.

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