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Value

EnerSys Inc. recently saw record quarterly earnings as it added investments in South America and South Africa. This Zacks #1 Rank (Strong Buy) is expected to see double digit earnings growth in Fiscal 2012. Yet it also has attractive valuations with a forward P/E of just 11.8.

EnerSys is the largest manufacturer of industrial batteries in the world with customers in over 100 countries. Operating for over 100 years, the company makes reserve power, motive power and batteries.

Motive power batteries are used in electric fork trucks and other commercial and industrial electric powered vehicles.

Reserve power batteries provide back-up for telecommunications and utility customers, uninterruptible power supplies and numerous applications requiring standby power.

EnerSys Blew by the Zacks Consensus Estimate in Fiscal Q3

On Feb 8, EnerSys reported fiscal third quarter results and surprised on the Zacks Consensus Estimate by 14.3%.

Earnings per share were a record 80 cents per share, beating the consensus by 10 cents a share. This was also much better than the company's own guidance of between 67 and 71 cents.

Sales jumped 13% to $574.2 million from $508.6 million due to a 4% increase in organic volume, a 3% increase due to higher prices and a 6% increase from acquisitions.

The company saw sales increases in its two biggest markets, the Americas and Europe. Sales in the Americas jumped 25% to $281.2 million while Europe, which has been struggling economically, still managed to post a 4.7% sales gain to $247.6 million.

Fourth Quarter Guidance

EnerSys was bullish about the end of its fiscal year even though global economic conditions remain mixed.

It expects fourth quarter EPS in the range of 86 to 90 cents due to the fourth quarter seasonally being its strongest quarter, lower commodity costs and relatively stable volumes.

Full Year Fiscal 2012 and 2013 Zacks Consensus Estimates Jump

Analysts liked what they heard. Not only did EnerSys beat on the quarter but it guided much higher on the fourth quarter. The fourth quarter Zacks Consensus Estimate was calling for 71 cents. The consensus has now jumped to 88 cents or right in the middle of the company's guidance range of 86 to 90 cents.

The full year consensus also jumped to $2.93 from $2.65 as 6 estimates moved higher since the earnings report.

That is earnings growth of 16.2%.

Fiscal 2013 is also looking bullish. 5 estimates moved higher in the last 7 days as the 2013 Zacks Consensus rose to $3.14 from $2.89. That is further earnings growth of 7.3%.

Plenty of Value Along With the Growth

Shares have staged a big rally in 2012, after last summer's sell-off left shares at 2 year lows.

But there's still plenty of value. Not only is the forward P/E of 11.8 under the S&P 500 average of 13 but it also has a price-to-book ratio of just 1.7. A P/B ratio under 3.0 indicates "value."

Additionally, EnerSys has a price-to-sales ratio of 0.7. A P/S ratio under 1.0 usually means a company is undervalued.

The company also has other solid fundamentals including a 1-year return on equity (ROE) of 14.2%.

A company with both growth and value is rare. EnerSys is expected to have both in fiscal 2012 even as it navigates the complex global economy.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at traceyryniec.

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