Edgewell Personal Care (NYSE:EPC) Shares Gap Down on Disappointing Earnings

Key Points

• Edgewell Personal Care's shares gapped down from a previous close of $25.00 to an opening price of $20.85, with the stock last trading at $20.36.
• Analysts have adjusted price targets for Edgewell, with Wells Fargo lowering its target from $35.00 to $32.00 while Barclays raised its target to $26.00, indicating mixed outlooks for the stock.
• The company reported a quarterly earnings miss, posting $0.87 EPS, which was below the consensus estimate of $0.90, and experienced a 3.1% year-over-year decline in revenue.

Edgewell Personal Care Company (NYSE:EPC - Get Free Report)'s share price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $25.00, but opened at $20.85. Edgewell Personal Care shares last traded at $20.36, with a volume of 131,148 shares trading hands.

The company reported $0.92 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.01 by ($0.09). The firm had revenue of $627.20 million during the quarter, compared to analyst estimates of $658.51 million. Edgewell Personal Care had a net margin of 2.94% and a return on equity of 8.06%. The company's revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter last year, the business posted $1.22 earnings per share.

Edgewell Personal Care Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 8th. Investors of record on Thursday, September 4th will be issued a dividend of $0.15 per share. The ex-dividend date of this dividend is Thursday, September 4th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.7%. Edgewell Personal Care's payout ratio is presently 44.44%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on EPC shares. UBS Group cut their price target on Edgewell Personal Care from $28.00 to $21.00 and set a "neutral" rating for the company in a report on Wednesday. Barclays dropped their price objective on shares of Edgewell Personal Care from $26.00 to $22.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Wells Fargo & Company reduced their target price on shares of Edgewell Personal Care from $35.00 to $32.00 and set an "overweight" rating for the company in a report on Thursday, May 8th. Canaccord Genuity Group lowered their price target on shares of Edgewell Personal Care from $35.00 to $32.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, Royal Bank Of Canada reduced their price objective on Edgewell Personal Care from $43.00 to $35.00 and set an "outperform" rating for the company in a report on Thursday, May 8th. Four analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $29.29.

Institutional Trading of Edgewell Personal Care

A number of institutional investors have recently bought and sold shares of the business. Quadrant Capital Group LLC raised its position in shares of Edgewell Personal Care by 85.9% in the fourth quarter. Quadrant Capital Group LLC now owns 751 shares of the company's stock valued at $25,000 after buying an additional 347 shares in the last quarter. PNC Financial Services Group Inc. increased its stake in Edgewell Personal Care by 238.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 975 shares of the company's stock worth $30,000 after acquiring an additional 687 shares during the period. First Horizon Advisors Inc. raised its holdings in Edgewell Personal Care by 195.3% in the 2nd quarter. First Horizon Advisors Inc. now owns 1,837 shares of the company's stock valued at $43,000 after acquiring an additional 1,215 shares in the last quarter. GAMMA Investing LLC lifted its position in shares of Edgewell Personal Care by 167.0% during the 2nd quarter. GAMMA Investing LLC now owns 1,968 shares of the company's stock valued at $46,000 after acquiring an additional 1,231 shares during the period. Finally, Sterling Capital Management LLC grew its holdings in shares of Edgewell Personal Care by 805.9% during the 4th quarter. Sterling Capital Management LLC now owns 1,531 shares of the company's stock worth $51,000 after purchasing an additional 1,362 shares in the last quarter. Institutional investors own 91.91% of the company's stock.

Edgewell Personal Care Trading Down 0.4%

The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.93 and a current ratio of 1.77. The company has a market capitalization of $1.02 billion, a price-to-earnings ratio of 16.31 and a beta of 0.81. The firm has a fifty day moving average price of $24.91 and a 200-day moving average price of $28.32.

Edgewell Personal Care Company Profile

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other.