Energizer (ENR) reported earnings today, but who cares about financial results when you’ve decided to split in two?Associated Press
And that’s exactly what Energizer has decided to do. Citigroup’s Wendy Nicholson and Beth Kite note that the quarter doesn’t “reflect great fundamentals” but the split-up is “great for the stock.” She explains:
We're pleased ENR reconfirmed guidance, as while the pressure to batteries sales accelerated in the quarter, the restructuring program is once-again tracking ahead of plan. ENR has banked $96 mm in restructuring savings YTD, such that it upwardly revised its FY14 savings goal to $100-$125 mm from $100 mm, previously. Clearly, today's results pale in comparison to the news that the company is splitting its Household Products and Personal Care segments into two stand-alone businesses. We were surprised and we think investors are likely surprised by this news, as ENR's management has repeatedly said they think the businesses create the most value under one company.
Shares of Energizer have jumped 15% to $112.37 at 10:24 a.m. today, while Spectrum Brands (SPB) has risen 1.4% to $76.88 and Kimberly Clark (KMB) has gained 1% to $112.14.