We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enersys (ENS) Q1 Earnings Surpass Estimates, Sales Miss
Read MoreHide Full Article
Enersys (ENS - Free Report) reported first-quarter fiscal 2025 (ended Jun 30, 2024) adjusted earnings of $1.98 per share, which surpassed the Zacks Consensus Estimate of $1.97. The bottom line increased 5% year over year due to lower operating expenses.
Enersys’ net sales of $852.9 million missed the consensus estimate of $878 million. The top line declined 6% year over year due to temporary spending pauses in telecom and broadband. While organic sales decreased 3%, price/mix and foreign currency translation had adverse impacts of 2% and 1%, respectively, on sales.
Segmental Discussion
The Energy Systems segment’s sales (accounting for 42.3% of total sales) were $361 million, down 15% year over year. The Zacks Consensus Estimate for segmental net sales was $372 million. Net sales decreased due to capital spending pauses of telecommunication and broadband customers. While organic sales decreased 11%, price/mix and foreign currency translation had an adverse impacts of 3% and 1%, respectively, on sales.
The Motive Power segment generated net sales of $366.2 million (accounting for 43% of total sales), up 4% year over year. The consensus estimate for segmental net sales was $366 million. The upside was driven by a 6% increase in organic volume, partially offset by a 1% unfavorable impact each from price/mix and foreign currency translation.
The Specialty segment’s sales were $125.7 million (accounting for 14.7% of total sales), down 6% year over year. The consensus estimate was $136 million. Organic volume declined 3% and foreign currency translation had an adverse impact of 3% on sales.
EnerSys' cost of sales decreased 8.8% year over year to $535.8 million. Gross profit decreased 0.8% year over year to $238.4 million while the adjusted gross margin was up 120 basis points (bps) to 28%.
Operating expenses decreased 2.4% year over year to $141.1 million. Adjusted operating earnings were down 1.4% to $106 million. The adjusted operating margin increased 60 bps year over year to 12.4%.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, EnerSys had cash and cash equivalents of $344.1 million compared with $346.7 million at the end of fiscal 2023. Long-term debt (net of unamortized debt issuance costs) was $867.1 million compared with $1.04 billion at the fiscal 2023-end.
EnerSys generated net cash of $10.4 million from operating activities in the fiscal first quarter compared with $74.9 million in the year-ago period. Capital expenditure totaled $36.1 million compared with $16.1 million in the previous year’s period.
In fiscal 2024, EnerSys rewarded its shareholders with a dividend payout of approximately $9.1 million, up 26.1% year over year. Concurrent with the earnings release, the company’s board of directors approved a 7% increase in its quarterly cash dividend, which increased to 24 cents from 22.5 cents per share.
Guidance
For fiscal 2025, EnerSys expects adjusted earnings to be in the range of $8.80–$9.20 per share compared with $8.55–$8.95 guided earlier. Net sales are now expected to be in the band of $3.735–$3.885 billion, higher than the previous projection of $3.7-$3.8 billion. The company expects capital expenditures to be approximately $100-$120 million. Tax rate is estimated to be in the band of 20–21%.
For the fiscal second quarter, the company anticipates adjusted earnings of $2.05–$2.15 per share. Net sales are projected to be in the range of $880–$920 million.
Zacks Rank and Key Picks
ENS currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the same space:
It has a trailing four-quarter average earnings surprise of 10.3%.
The Zacks Consensus Estimate for ALLE’s 2024 earnings has increased 1.1% in the past 60 days.
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 18.2%.
In the past 60 days, the consensus estimate for Flowserve’s 2024 earnings has increased 3%.
AptarGroup, Inc. (ATR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.2%.
In the past 60 days, the Zacks Consensus Estimate for ATR’s 2024 earnings has remained stable.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Enersys (ENS) Q1 Earnings Surpass Estimates, Sales Miss
Enersys (ENS - Free Report) reported first-quarter fiscal 2025 (ended Jun 30, 2024) adjusted earnings of $1.98 per share, which surpassed the Zacks Consensus Estimate of $1.97. The bottom line increased 5% year over year due to lower operating expenses.
Enersys’ net sales of $852.9 million missed the consensus estimate of $878 million. The top line declined 6% year over year due to temporary spending pauses in telecom and broadband. While organic sales decreased 3%, price/mix and foreign currency translation had adverse impacts of 2% and 1%, respectively, on sales.
Segmental Discussion
The Energy Systems segment’s sales (accounting for 42.3% of total sales) were $361 million, down 15% year over year. The Zacks Consensus Estimate for segmental net sales was $372 million. Net sales decreased due to capital spending pauses of telecommunication and broadband customers. While organic sales decreased 11%, price/mix and foreign currency translation had an adverse impacts of 3% and 1%, respectively, on sales.
The Motive Power segment generated net sales of $366.2 million (accounting for 43% of total sales), up 4% year over year. The consensus estimate for segmental net sales was $366 million. The upside was driven by a 6% increase in organic volume, partially offset by a 1% unfavorable impact each from price/mix and foreign currency translation.
The Specialty segment’s sales were $125.7 million (accounting for 14.7% of total sales), down 6% year over year. The consensus estimate was $136 million. Organic volume declined 3% and foreign currency translation had an adverse impact of 3% on sales.
Enersys Price, Consensus and EPS Surprise
Enersys price-consensus-eps-surprise-chart | Enersys Quote
Margin Profile
EnerSys' cost of sales decreased 8.8% year over year to $535.8 million. Gross profit decreased 0.8% year over year to $238.4 million while the adjusted gross margin was up 120 basis points (bps) to 28%.
Operating expenses decreased 2.4% year over year to $141.1 million. Adjusted operating earnings were down 1.4% to $106 million. The adjusted operating margin increased 60 bps year over year to 12.4%.
Balance Sheet and Cash Flow
At the end of the fiscal first quarter, EnerSys had cash and cash equivalents of $344.1 million compared with $346.7 million at the end of fiscal 2023. Long-term debt (net of unamortized debt issuance costs) was $867.1 million compared with $1.04 billion at the fiscal 2023-end.
EnerSys generated net cash of $10.4 million from operating activities in the fiscal first quarter compared with $74.9 million in the year-ago period. Capital expenditure totaled $36.1 million compared with $16.1 million in the previous year’s period.
In fiscal 2024, EnerSys rewarded its shareholders with a dividend payout of approximately $9.1 million, up 26.1% year over year. Concurrent with the earnings release, the company’s board of directors approved a 7% increase in its quarterly cash dividend, which increased to 24 cents from 22.5 cents per share.
Guidance
For fiscal 2025, EnerSys expects adjusted earnings to be in the range of $8.80–$9.20 per share compared with $8.55–$8.95 guided earlier. Net sales are now expected to be in the band of $3.735–$3.885 billion, higher than the previous projection of $3.7-$3.8 billion. The company expects capital expenditures to be approximately $100-$120 million. Tax rate is estimated to be in the band of 20–21%.
For the fiscal second quarter, the company anticipates adjusted earnings of $2.05–$2.15 per share. Net sales are projected to be in the range of $880–$920 million.
Zacks Rank and Key Picks
ENS currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the same space:
Allegion plc (ALLE - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has a trailing four-quarter average earnings surprise of 10.3%.
The Zacks Consensus Estimate for ALLE’s 2024 earnings has increased 1.1% in the past 60 days.
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank of 2. FLS delivered a trailing four-quarter average earnings surprise of 18.2%.
In the past 60 days, the consensus estimate for Flowserve’s 2024 earnings has increased 3%.
AptarGroup, Inc. (ATR - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 7.2%.
In the past 60 days, the Zacks Consensus Estimate for ATR’s 2024 earnings has remained stable.