Personal care company Edgewell Personal Care (NYSE: EPC) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 3.1% year on year to $580.7 million. Its non-GAAP profit of $0.87 per share was 3.1% below analysts’ consensus estimates.
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Edgewell Personal Care (EPC) Q1 CY2025 Highlights:
- Revenue: $580.7 million vs analyst estimates of $591.2 million (3.1% year-on-year decline, 1.8% miss)
- Adjusted EPS: $0.87 vs analyst expectations of $0.90 (3.1% miss)
- Adjusted EBITDA: $99.3 million vs analyst estimates of $97.18 million (17.1% margin, 2.2% beat)
- Management lowered its full-year Adjusted EPS guidance to $2.95 at the midpoint, a 9.2% decrease
- EBITDA guidance for the full year is $335 million at the midpoint, below analyst estimates of $356.3 million
- Operating Margin: 10.1%, down from 11.7% in the same quarter last year
- Free Cash Flow was -$104.4 million, down from $117.5 million in the same quarter last year
- Organic Revenue fell 1.5% year on year (0.1% in the same quarter last year)
- Market Capitalization: $1.45 billion
Company Overview
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Sales Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $2.22 billion in revenue over the past 12 months, Edgewell Personal Care is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, Edgewell Personal Care’s 1.5% annualized revenue growth over the last three years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.
This quarter, Edgewell Personal Care missed Wall Street’s estimates and reported a rather uninspiring 3.1% year-on-year revenue decline, generating $580.7 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 2.2% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and suggests its newer products will not accelerate its top-line performance yet.
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Organic Revenue Growth
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Edgewell Personal Care’s products has barely risen over the last eight quarters. On average, the company’s organic sales have been flat. 
In the latest quarter, Edgewell Personal Care’s organic sales fell by 1.5% year on year. This decline was a reversal from its historical levels. We’ll keep a close eye on the company to see if this turns into a longer-term trend.
Key Takeaways from Edgewell Personal Care’s Q1 Results
It was encouraging to see Edgewell Personal Care beat analysts’ EBITDA expectations this quarter. On the other hand, its organic revenue missed and its full-year EBITDA guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 5% to $28.53 immediately after reporting.
Edgewell Personal Care’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
