EPC Stock Forecast & Price Target

Edgewell Personal Care Co has demonstrated resilience with a net sales increase of 3% in the second quarter, attributed to both price and volume gains across its diverse brand portfolio in key segments like Wet Shave and Sun Care. The company is anticipating gross margin expansion of 10 basis points, which, despite the challenges of increased operating costs and tariffs, indicates ongoing operational improvements and strategic investments. Furthermore, the projected EBITDA of $334 million and EPS of $2.94 reflect robust financial performance, suggesting a solid foundation for future growth, despite slight downward revisions in sales growth and profit margins.

Edgewell Personal Care Co is experiencing a concerning decline in net sales, with a reduction of 4% in North America attributed to decreasing volumes across its core segments: Wet Shave, Feminine Care, and Sun Care. The anticipated impact of incremental tariff costs further complicates profitability, suggesting an additional financial burden. Moreover, the necessity for ongoing reinvestment to achieve revenue growth has resulted in muted expectations for both earnings before interest and taxes (EBIT) and free cash flow (FCF).