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EnerSys (ENS) Authorizes $150M Share Repurchase Program
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EnerSys (ENS - Free Report) yesterday announced rewards for shareholders in the form of share buyback authorization. We believe that the repurchase program is in sync with its commitment to rewarding shareholders handsomely.
The company’s shares gained 4.8% yesterday to eventually close the trading session at $71.04.
Details on Share Buyback Program
Under the aforementioned buyback program, EnerSys has been authorized by its board of directors to repurchase shares worth $150 million. The buyback can be carried out in the open market or through privately negotiated transactions, subject to market conditions and other factors. The buyback program is applicable with no expiration date.
With the new share repurchase authorization, the company is left to repurchase shares worth $181 million in aggregate, including $31 million available under its previously approved share buyback program.
Sound Capital Allocation Strategies
EnerSys follows sound capital allocation strategies, aiming to improve values for shareholders. The company acquires lucrative businesses, buys back shares and provides attractive dividends to shareholders.
It is worth mentioning here that on a fiscal year 2022-to-date basis, EnerSys repurchased shares worth $159 million. Also, it paid out dividends worth $22.2 million in the first three quarters of fiscal 2022 (ended Jan 2, 2022).
Zacks Rank, Price Performance and Estimate Revisions
EnerSys, with $2.9 billion market capitalization, currently carries a Zacks Rank #3 (Hold). In the quarters ahead, the company is poised to benefit from solid product offerings and strengthening demand in transportation, defense and lithium-based battery technology end markets. A healthy backlog and innovation capabilities, as well as a sound capital allocation strategy, add to its attractiveness.
However, product component shortages, along with high freight and tariffs, and labor constraints, might be concerning for the company in the near term.
Image Source: Zacks Investment Research
In the past three months, the company’s share price has decreased 7.4% compared with the industry’s decline of 11%.
The Zacks Consensus Estimate for EnerSys’ earnings is pegged at $4.44 for fiscal 2022 (ending March 2022), down 0.4% from the 30-day-ago figure. The consensus estimate for fiscal 2023 (ending March 2023) earnings is pegged at $5.42, up 2.5% over the same time frame.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
In the past 30 days, Zurn’s earnings estimates have been unchanged for 2022. ZWS’s shares have lost 10.3% in the past three months.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 16.90%, on average.
AZZ’s earnings estimates have been unchanged for fiscal 2022 (ended February 2022, results awaited) in the past 30 days. AZZ’s shares have declined 5.2% in the past three months.
Franklin Electric Co., Inc. (FELE - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 17.44%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 9.8% in the past three months.
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EnerSys (ENS) Authorizes $150M Share Repurchase Program
EnerSys (ENS - Free Report) yesterday announced rewards for shareholders in the form of share buyback authorization. We believe that the repurchase program is in sync with its commitment to rewarding shareholders handsomely.
The company’s shares gained 4.8% yesterday to eventually close the trading session at $71.04.
Details on Share Buyback Program
Under the aforementioned buyback program, EnerSys has been authorized by its board of directors to repurchase shares worth $150 million. The buyback can be carried out in the open market or through privately negotiated transactions, subject to market conditions and other factors. The buyback program is applicable with no expiration date.
With the new share repurchase authorization, the company is left to repurchase shares worth $181 million in aggregate, including $31 million available under its previously approved share buyback program.
Sound Capital Allocation Strategies
EnerSys follows sound capital allocation strategies, aiming to improve values for shareholders. The company acquires lucrative businesses, buys back shares and provides attractive dividends to shareholders.
It is worth mentioning here that on a fiscal year 2022-to-date basis, EnerSys repurchased shares worth $159 million. Also, it paid out dividends worth $22.2 million in the first three quarters of fiscal 2022 (ended Jan 2, 2022).
Zacks Rank, Price Performance and Estimate Revisions
EnerSys, with $2.9 billion market capitalization, currently carries a Zacks Rank #3 (Hold). In the quarters ahead, the company is poised to benefit from solid product offerings and strengthening demand in transportation, defense and lithium-based battery technology end markets. A healthy backlog and innovation capabilities, as well as a sound capital allocation strategy, add to its attractiveness.
However, product component shortages, along with high freight and tariffs, and labor constraints, might be concerning for the company in the near term.
Image Source: Zacks Investment Research
In the past three months, the company’s share price has decreased 7.4% compared with the industry’s decline of 11%.
The Zacks Consensus Estimate for EnerSys’ earnings is pegged at $4.44 for fiscal 2022 (ending March 2022), down 0.4% from the 30-day-ago figure. The consensus estimate for fiscal 2023 (ending March 2023) earnings is pegged at $5.42, up 2.5% over the same time frame.
Stocks to Consider
Some better-ranked companies from the same space are discussed below.
Zurn Water Solutions Corporation (ZWS - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 62.43%, on average.
In the past 30 days, Zurn’s earnings estimates have been unchanged for 2022. ZWS’s shares have lost 10.3% in the past three months.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 16.90%, on average.
AZZ’s earnings estimates have been unchanged for fiscal 2022 (ended February 2022, results awaited) in the past 30 days. AZZ’s shares have declined 5.2% in the past three months.
Franklin Electric Co., Inc. (FELE - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 17.44%, on average.
In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 9.8% in the past three months.