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Why Is EnerSys (ENS) Down 4.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for EnerSys (ENS - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is EnerSys due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Enersys before we dive into how investors and analysts have reacted as of late.
EnerSys reported fourth-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of $3.19 per share, which surpassed the Zacks Consensus Estimate of $3.00. The bottom line increased 7% year over year.
EnerSys’ net sales of $988 million beat the consensus estimate of $973 million. The top line increased 1% year over year. The top-line results were driven by a favorable impact of 4% from pricing and the positive impact of 3% from foreign currency translation, partially offset by a 6% decline in organic volume.
Segmental Discussion
The Energy Systems segment’s sales (accounting for 43.1% of total sales) were $425.7 million, up 7% year over year. The Zacks Consensus Estimate for segmental net sales was $411 million. Net sales increased due to strength in data centers and U.S. Communications market. While volume was flat, price/mix and foreign currency translation had positive impacts of about 4% and 3%, respectively, on sales.
The Motive Power segment generated net sales of $370.1 million (accounting for 37.5% of total sales), down 5.7% year over year. The consensus estimate for segmental net sales was $381 million. Volume declined 10% in the quarter. While foreign currency translation had a favorable impact of 3% on sales, price/mix had 1% positive impact on sales. Lower sales were attributable to tepid demand in the Americas region and softness in the EMEA automotive market.
The Specialty segment’s sales were $192.2 million (accounting for 19.5% of total sales), up 8.1% year over year. The consensus estimate was $180 million. Results were impacted by softness in markets. While volume decreased 6%, price/mix and acquisitions had 11% and 2% positive impact on sales, respectively. Foreign currency translation positively impacted sales by 1%.
Margin Profile
EnerSys' gross profit decreased 4.2% year over year to $290.9 million while the gross margin was down 180 basis points (bps) to 29.4%.
Operating expenses were down 8.9% year over year to $148.3 million. Operating earnings decreased 5.8% to $123.7 million. The operating margin decreased 100 bps year over year to 12.5%.
Balance Sheet and Cash Flow
At the end of fiscal 2026, EnerSys had cash and cash equivalents of $438.7 million compared with $343.1 million at the end of fiscal 2025. Long-term debt (net of unamortized debt issuance costs) was $1.08 billion, relatively stable compared with fiscal 2025-end.
EnerSys generated net cash of $547.6 million from operating activities in fiscal 2026 compared with $260.3 million in the year-ago period. Capital expenditure totaled $80.1 million compared with $121 million in the previous fiscal year.
In fiscal 2026, EnerSys rewarded its shareholders with a dividend payout of approximately $38.1 million, up 1.6% year over year.
Guidance
For first-quarter fiscal 2027 (ending June 2026), EnerSys expects adjusted earnings to be in the range of $2.70–$2.90 per share. Net sales are expected to be in the band of $915–$955 million.
For fiscal 2027, the company expects capital expenditures of approximately $70 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, EnerSys has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, EnerSys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is EnerSys (ENS) Down 4.6% Since Last Earnings Report?
A month has gone by since the last earnings report for EnerSys (ENS - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is EnerSys due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Enersys before we dive into how investors and analysts have reacted as of late.
EnerSys' Q4 Earnings & Sales Beat Estimates, Increase Y/Y
EnerSys reported fourth-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of $3.19 per share, which surpassed the Zacks Consensus Estimate of $3.00. The bottom line increased 7% year over year.
EnerSys’ net sales of $988 million beat the consensus estimate of $973 million. The top line increased 1% year over year. The top-line results were driven by a favorable impact of 4% from pricing and the positive impact of 3% from foreign currency translation, partially offset by a 6% decline in organic volume.
Segmental Discussion
The Energy Systems segment’s sales (accounting for 43.1% of total sales) were $425.7 million, up 7% year over year. The Zacks Consensus Estimate for segmental net sales was $411 million. Net sales increased due to strength in data centers and U.S. Communications market. While volume was flat, price/mix and foreign currency translation had positive impacts of about 4% and 3%, respectively, on sales.
The Motive Power segment generated net sales of $370.1 million (accounting for 37.5% of total sales), down 5.7% year over year. The consensus estimate for segmental net sales was $381 million. Volume declined 10% in the quarter. While foreign currency translation had a favorable impact of 3% on sales, price/mix had 1% positive impact on sales. Lower sales were attributable to tepid demand in the Americas region and softness in the EMEA automotive market.
The Specialty segment’s sales were $192.2 million (accounting for 19.5% of total sales), up 8.1% year over year. The consensus estimate was $180 million. Results were impacted by softness in markets. While volume decreased 6%, price/mix and acquisitions had 11% and 2% positive impact on sales, respectively. Foreign currency translation positively impacted sales by 1%.
Margin Profile
EnerSys' gross profit decreased 4.2% year over year to $290.9 million while the gross margin was down 180 basis points (bps) to 29.4%.
Operating expenses were down 8.9% year over year to $148.3 million. Operating earnings decreased 5.8% to $123.7 million. The operating margin decreased 100 bps year over year to 12.5%.
Balance Sheet and Cash Flow
At the end of fiscal 2026, EnerSys had cash and cash equivalents of $438.7 million compared with $343.1 million at the end of fiscal 2025. Long-term debt (net of unamortized debt issuance costs) was $1.08 billion, relatively stable compared with fiscal 2025-end.
EnerSys generated net cash of $547.6 million from operating activities in fiscal 2026 compared with $260.3 million in the year-ago period. Capital expenditure totaled $80.1 million compared with $121 million in the previous fiscal year.
In fiscal 2026, EnerSys rewarded its shareholders with a dividend payout of approximately $38.1 million, up 1.6% year over year.
Guidance
For first-quarter fiscal 2027 (ending June 2026), EnerSys expects adjusted earnings to be in the range of $2.70–$2.90 per share. Net sales are expected to be in the band of $915–$955 million.
For fiscal 2027, the company expects capital expenditures of approximately $70 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, EnerSys has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, EnerSys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.