Enersys (ENS) Q4 Earnings and Revenues Surpass Estimates

Zacks Equity Research

23 May 2024 at 11:04 am·4-min read

Enersys Price, Consensus and EPS Surprise

Enersys ENS reported fourth-quarter fiscal 2024 (ended Mar 31, 2024) adjusted earnings of $2.08 per share, which surpassed the Zacks Consensus Estimate of $2.02. The bottom line surged 14.3% year over year due to lower sales costs.

Enersys’ total revenues of $911 million beat the consensus estimate of $900 million. The top line declined 8% year over year due to temporary spending pauses in telecom and broadband. Organic sales decreased 7% and foreign currency translation had an adverse impact of 1% on sales.

Segmental Discussion

The Energy Systems segment’s sales (accounting for 40.5% of total sales) were $369.4 million, down 19.4% year over year. The Zacks Consensus Estimate for segmental revenues was $378 million. Segmental revenues decreased due to capital spending pauses of telecommunication and broadband customers. Price/mix had a positive impact of 2% while foreign currency translation had an adverse impact of 2%.

The Motive Power segment generated revenues of $394.8 million (accounting for 43.3% of total sales), up 3% year over year. The consensus estimate for segmental revenues was $366 million. The upside was due to a 5% increase in organic sales, partially offset by a 1% unfavorable impact from acquisitions.

The Specialty segment’s sales were $132.6 million (accounting for 16.2% of total sales), down 1.1% year over year. The consensus estimate for the same was $145 million. Organic volume was flat year over year.

Margin Profile

EnerSys' cost of sales decreased 11.8% year over year to $656.4 million. Gross profit in the quarter increased 3.4% year over year to $254.3 million while the gross margin was up 300 basis points (bps) to 27.9%.

Operating expenses increased 7.7% year over year to $157.3 million. Adjusted operating earnings were up 2% to $109.2 million. The margin increased 120 bps year over year to 12%.

Enersys Price, Consensus and EPS Surprise

Enersys price-consensus-eps-surprise-chart | Enersys Quote

Balance Sheet and Cash Flow

At the end of the fourth quarter, EnerSys had cash and cash equivalents of $333.3 million compared with $346.7 million at the end of fiscal 2023. Long-term debt (net of unamortized debt issuance costs) was $802 million compared with $1.04 billion at the fiscal 2023-end.

EnerSys generated net cash of $457 million from operating activities in fiscal 2024 compared with $279.9 million in the year-ago period. Capital expenditure totaled $86.4 million compared with $88.8 million in the previous year’s period.

In fiscal 2024, ENS rewarded its shareholders with a dividend payout of $34.5 million, up 20.8% year over year.

Fiscal 2025 Guidance

For fiscal 2025, EnerSys expects adjusted earnings to be in the range of $8.55–$8.95 per share. Net sales are expected to be in the band of $3.7-$3.8 billion. The company expects capital expenditures to be approximately $100-$120 million.

Zacks Rank

The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

IDEX Corporation’s IEX second-quarter adjusted earnings of $1.88 per share surpassed the Zacks Consensus Estimate of $1.75. On a year-over-year basis, the bottom line decreased approximately 10.1%.

IDEX’s net sales of $800.5 million underperformed the consensus estimate of $805 million. The top line also decreased 5.3% year over year.

A. O. Smith Corporation’s AOS second-quarter 2024 adjusted earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 99 cents. The bottom line increased 6% on a year-over-year basis.

Net sales of $978.8 million missed the consensus estimate of $995 million. However, the top line inched up 1% year over year, driven by strong demand for commercial water heaters in North America.

W.W. Grainger, Inc. GWW has reported earnings per share of $9.62 in the second quarter, beating the Zacks Consensus Estimate of $9.58. The bottom line improved 0.1% year over year.

Grainger’s quarterly revenues rose 3.5% year over year to $4.24 billion. The top line missed the consensus estimate of $4.27 billion.

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Enersys (ENS) Q4 Earnings and Revenues Surpass Estimates