What's likely to keep Energizer Holdings (ENR) going and going? It may not be the company's namesake battery line. Sales have been suffering...
What’s likely to keep Energizer Holdings (ENR) going and going?
It may not be the company’s namesake battery line.
Sales have been suffering along with overall demand for household goods amid a housing slump, while prices for raw materials like zinc are climbing.
Revenue would have dipped in the fiscal second quarter if it were not for Playtex Products, which Energizer bought for $1.16 billion in October 2007.
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The purchase expanded its personal-care products, adding Playtex tampons, Banana Boat and Hawaiian Tropic sun-care lotions and Wet Ones antibacterial wipes.
Citi Investment Research analyst Wendy Nicholson says Energizer’s historically erratic earnings are likely to continue this year as the company digests Playtex.
But she rates the stock “buy,” expecting Energizer to meet its goal of $70 million in cost savings from the acquisition. Profit growth should steady after the integration, she says.