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EnerSys (ENS) Q4 Earnings and Revenues Surpass Estimates
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EnerSys (ENS - Free Report) reported better-than-expected results for fourth-quarter fiscal 2022 (ended Mar 31, 2022). ENS’ earnings surpassed the Zacks Consensus Estimate by 4.4% while sales beat the same by 2.9%.
ENS’ earnings in the quarter under review were $1.20 per share, surpassing the Zacks Consensus Estimate of $1.15. However, the bottom line declined 7.7% from the year-ago figure of $1.30 as higher costs and expenses more than offset the positive impacts of revenue growth.
In fiscal 2022, EnerSys’ earnings came in at $4.47, down 0.4% on a year-over-year basis.
Revenue Details
In the quarter under review, EnerSys’ revenues were $907 million, up 11.5% from the year-ago quarter’s level. Organic sales in the quarter grew 8% on the back of strengthening markets. Pricing positively impacted sales by 6% while forex woes left a negative impact of 2%.
On a sequential basis, ENS revenues increased 7.5%.
Exiting the reported quarter, EnerSys had a backlog of $1.3 billion.
ENS’ revenues surpassed the Zacks Consensus Estimate of $881 million.
Geographically, ENS' net sales increased 16% year over year to $643 million in the Americas, while the metric witnessed growth of 1% to $204 million in Europe, the Middle East and Africa. Sales in Asia were $59 million, reflecting an increase of 9% from the year-ago quarter’s level.
Its segmental performance for the fiscal fourth quarter is briefly discussed below:
Energy Systems' sales were $410 million, contributing 45.2% to net revenues in the quarter under review. On a year-over-year basis, the segment's revenues increased 18%. Volume was up 13% while pricing had a positive impact of 6%. Adverse foreign currency translations hurt 2%.
The Motive Power segment generated revenues of $365 million, contributing 40.2% to net revenues in the reported quarter. The figure increased 10% year over year based on 6% growth in volumes and a 6% positive contribution from pricing. Forex woes left a negative impact of 3%.
Specialty's sales were $132 million, contributing 14.6% to net revenues in the quarter under review. On a year-over-year basis, the segment's revenues remained flat. Pricing had a positive impact of 3% on the quarter, while volumes and foreign currency translations had negative impacts of 2% and 1%, respectively.
In fiscal 2022, EnerSys’ net sales came in at $ 3,357.3 million, up 12.7% year over year.
In the reported quarter, EnerSys' cost of sales increased 15.6% year over year to $712.4 million. The cost of sales was 78.5% of the quarter's net sales. The gross profit in the quarter decreased 1.4% year over year to $194.6 million, while the gross margin fell 280 basis points (bps) year over year to 21.5%.
Operating expenses increased 12.3% year over year to $140.3 million. ENS represented 15.5% of net sales in the reported quarter compared with 15.4% in the year-ago quarter. Adjusted operating earnings were $66.8 million, reflecting a year-over-year decline of 14.8%. Margin decreased 220 bps year over year to 7.4%.
ENS' performance in the quarter suffered cost inflation and supply-chain constraints. However, pricing actions were a relief.
Balance Sheet and Cash Flow
Exiting fiscal 2022, EnerSys had cash and cash equivalents of $402.5 million, down 10.9% from $451.8 million recorded in the last reported year. Long-term debt increased 4.1% sequentially to $1,243 million.
In fiscal 2022, ENS repaid a term loan of $161.4 million and revolving credit borrowings of $88.4 million. However, proceeds for revolving credit borrowings were $523.4 million in fiscal 2022.
EnerSys used net cash of $65.6 million for its operating activities in fiscal 2022 against a net cash generation of $358.4 million in fiscal 2021. Capital expenditure totaled $74 million compared with $70 million in the previous year.
EnerSys rewarded its shareholders with a dividend payout of $29.4 million in fiscal 2022. Share repurchased amounted to $156.4 million. ENS is left to buy back shares worth $163 million.
Concurrently, EnerSys’ board of directors approved the payment of a quarterly cash dividend of 17.5 cents per share to its shareholders of record as of Jun 16, 2022. The disbursement will be made on Jun 30, 2022.
Outlook
EnerSys anticipates gaining from healthy demand, effective pricing and technological expertise in the quarters ahead. Cost inflation is worrisome. Earnings for the first quarter of fiscal 2023 are expected to be $1.10-$1.20 per share.
Zacks Rank & Stocks to Consider
With a market capitalization of $2.7 billion, EnerSys currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies from the industrial products sector are discussed below:
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have dipped 1.8% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.1% for 2022. The stock has declined 5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.2% for 2022. The stock has declined 3.5% in the past three months.
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EnerSys (ENS) Q4 Earnings and Revenues Surpass Estimates
EnerSys (ENS - Free Report) reported better-than-expected results for fourth-quarter fiscal 2022 (ended Mar 31, 2022). ENS’ earnings surpassed the Zacks Consensus Estimate by 4.4% while sales beat the same by 2.9%.
ENS’ earnings in the quarter under review were $1.20 per share, surpassing the Zacks Consensus Estimate of $1.15. However, the bottom line declined 7.7% from the year-ago figure of $1.30 as higher costs and expenses more than offset the positive impacts of revenue growth.
In fiscal 2022, EnerSys’ earnings came in at $4.47, down 0.4% on a year-over-year basis.
Revenue Details
In the quarter under review, EnerSys’ revenues were $907 million, up 11.5% from the year-ago quarter’s level. Organic sales in the quarter grew 8% on the back of strengthening markets. Pricing positively impacted sales by 6% while forex woes left a negative impact of 2%.
On a sequential basis, ENS revenues increased 7.5%.
Exiting the reported quarter, EnerSys had a backlog of $1.3 billion.
ENS’ revenues surpassed the Zacks Consensus Estimate of $881 million.
Geographically, ENS' net sales increased 16% year over year to $643 million in the Americas, while the metric witnessed growth of 1% to $204 million in Europe, the Middle East and Africa. Sales in Asia were $59 million, reflecting an increase of 9% from the year-ago quarter’s level.
Its segmental performance for the fiscal fourth quarter is briefly discussed below:
Energy Systems' sales were $410 million, contributing 45.2% to net revenues in the quarter under review. On a year-over-year basis, the segment's revenues increased 18%. Volume was up 13% while pricing had a positive impact of 6%. Adverse foreign currency translations hurt 2%.
The Motive Power segment generated revenues of $365 million, contributing 40.2% to net revenues in the reported quarter. The figure increased 10% year over year based on 6% growth in volumes and a 6% positive contribution from pricing. Forex woes left a negative impact of 3%.
Specialty's sales were $132 million, contributing 14.6% to net revenues in the quarter under review. On a year-over-year basis, the segment's revenues remained flat. Pricing had a positive impact of 3% on the quarter, while volumes and foreign currency translations had negative impacts of 2% and 1%, respectively.
In fiscal 2022, EnerSys’ net sales came in at $ 3,357.3 million, up 12.7% year over year.
Enersys Price, Consensus and EPS Surprise
Enersys price-consensus-eps-surprise-chart | Enersys Quote
Margin Profile
In the reported quarter, EnerSys' cost of sales increased 15.6% year over year to $712.4 million. The cost of sales was 78.5% of the quarter's net sales. The gross profit in the quarter decreased 1.4% year over year to $194.6 million, while the gross margin fell 280 basis points (bps) year over year to 21.5%.
Operating expenses increased 12.3% year over year to $140.3 million. ENS represented 15.5% of net sales in the reported quarter compared with 15.4% in the year-ago quarter. Adjusted operating earnings were $66.8 million, reflecting a year-over-year decline of 14.8%. Margin decreased 220 bps year over year to 7.4%.
ENS' performance in the quarter suffered cost inflation and supply-chain constraints. However, pricing actions were a relief.
Balance Sheet and Cash Flow
Exiting fiscal 2022, EnerSys had cash and cash equivalents of $402.5 million, down 10.9% from $451.8 million recorded in the last reported year. Long-term debt increased 4.1% sequentially to $1,243 million.
In fiscal 2022, ENS repaid a term loan of $161.4 million and revolving credit borrowings of $88.4 million. However, proceeds for revolving credit borrowings were $523.4 million in fiscal 2022.
EnerSys used net cash of $65.6 million for its operating activities in fiscal 2022 against a net cash generation of $358.4 million in fiscal 2021. Capital expenditure totaled $74 million compared with $70 million in the previous year.
EnerSys rewarded its shareholders with a dividend payout of $29.4 million in fiscal 2022. Share repurchased amounted to $156.4 million. ENS is left to buy back shares worth $163 million.
Concurrently, EnerSys’ board of directors approved the payment of a quarterly cash dividend of 17.5 cents per share to its shareholders of record as of Jun 16, 2022. The disbursement will be made on Jun 30, 2022.
Outlook
EnerSys anticipates gaining from healthy demand, effective pricing and technological expertise in the quarters ahead. Cost inflation is worrisome. Earnings for the first quarter of fiscal 2023 are expected to be $1.10-$1.20 per share.
Zacks Rank & Stocks to Consider
With a market capitalization of $2.7 billion, EnerSys currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have dipped 1.8% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.1% for 2022. The stock has declined 5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.2% for 2022. The stock has declined 3.5% in the past three months.