We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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) Earnings Miss Estimates in Q4, Decline Y/Y
Read MoreHide Full Article
EnerSys (ENS - Free Report) reported mixed fourth-quarter fiscal 2020 (ended Mar 31, 2020) results, wherein its earnings missed estimates but net sales surpassed the same.
The company’s adjusted earnings were $1.11 per share, lagging the Zacks Consensus Estimate of $1.22. Also, the bottom line declined 22.4% from the year-ago figure of $1.43.
For fiscal 2020, EnerSys reported adjusted earnings of $4.68, down 5.1% from the year-ago figure of $4.93.
Top-Line Details
In the quarter, EnerSys’ net sales were $781.8 million, down 1.9% from the year-ago quarter. The decline was primarily attributable to a 3% decrease in organic volumes and forex woes of 2%, partially offset by a 3% positive impact of the NorthStar acquisition. Notably, the top line beat the Zacks Consensus Estimate of $778 million.
Sales generated from the reserve power product line totaled $428.8 million, decreasing 4.6% year over year, while that from motive power increased 1.6% to $353 million. The company noted that measures to contain the coronavirus outbreak adversely impacted its performances, especially in China, and also disrupted its supply chain.
For fiscal 2020, the company generated net sales of $3,087.8 million, up 10% from the $2,808 million reported in fiscal 2019.
The company reports net sales under three segments as discussed below:
Net sales from the Americas (representing 68.7% of the quarter’s net sales) were $537.2 million, increasing 5.8% year over year. The rise was driven by 4% growth in organic volume and a positive impact of 3% from buyouts, partially offset by a 1% adverse impact of forex woes.
Net sales from Europe, Middle East and Africa (25.5%) totaled $199 million, declining 12.8% year over year. The decline was attributable to a 14% fall in organic volumes, 3% adverse impact of forex woes, partially offset by a positive impact of 4% from buyouts.
Net sales from Asia (5.8%) were $45.6 million, down 24.6% year over year. The decline was on account of a 20% decline in organic volume, 4% adverse impact of forex woes and a 1% decrease in pricing.
In the quarter, EnerSys’ cost of goods sold was $582.9 million, down 0.9% year over year. It represented 74.6% of net sales. Gross profit decreased 0.7% to $200.8 million, while margin increased 30 basis points to 25.7%.
Operating expenses were $133.8 million, representing 17.1% of net sales. Total operating earnings decreased 42.5% to $20.1 million.
Balance Sheet and Cash Flow
Exiting fiscal 2020, EnerSys had cash and cash equivalents of $327 million compared with $299.2 million at the end of the previous fiscal year. As of Mar 31, 2020, the company’s long-term debt (net of unamortized debt issuance costs) was $1,104.7 compared with $971.8 million at the end of fiscal 2019.
During fiscal 2020, it generated net cash of $253.4 million from operating activities. Capital expenditure totaled $101.4 million compared with $70.4 million incurred in the previous fiscal year.
Outlook
The company anticipates witnessing uncertainties related to the coronavirus pandemic in the near term. However, it expects to see opportunities from communications and defense customers.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.
Alcoa delivered a positive earnings surprise of 12.78%, on average, in the trailing four quarters.
Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Image: Bigstock
EnerSys (ENS) Earnings Miss Estimates in Q4, Decline Y/Y
EnerSys (ENS - Free Report) reported mixed fourth-quarter fiscal 2020 (ended Mar 31, 2020) results, wherein its earnings missed estimates but net sales surpassed the same.
The company’s adjusted earnings were $1.11 per share, lagging the Zacks Consensus Estimate of $1.22. Also, the bottom line declined 22.4% from the year-ago figure of $1.43.
For fiscal 2020, EnerSys reported adjusted earnings of $4.68, down 5.1% from the year-ago figure of $4.93.
Top-Line Details
In the quarter, EnerSys’ net sales were $781.8 million, down 1.9% from the year-ago quarter. The decline was primarily attributable to a 3% decrease in organic volumes and forex woes of 2%, partially offset by a 3% positive impact of the NorthStar acquisition. Notably, the top line beat the Zacks Consensus Estimate of $778 million.
Sales generated from the reserve power product line totaled $428.8 million, decreasing 4.6% year over year, while that from motive power increased 1.6% to $353 million. The company noted that measures to contain the coronavirus outbreak adversely impacted its performances, especially in China, and also disrupted its supply chain.
For fiscal 2020, the company generated net sales of $3,087.8 million, up 10% from the $2,808 million reported in fiscal 2019.
The company reports net sales under three segments as discussed below:
Net sales from the Americas (representing 68.7% of the quarter’s net sales) were $537.2 million, increasing 5.8% year over year. The rise was driven by 4% growth in organic volume and a positive impact of 3% from buyouts, partially offset by a 1% adverse impact of forex woes.
Net sales from Europe, Middle East and Africa (25.5%) totaled $199 million, declining 12.8% year over year. The decline was attributable to a 14% fall in organic volumes, 3% adverse impact of forex woes, partially offset by a positive impact of 4% from buyouts.
Net sales from Asia (5.8%) were $45.6 million, down 24.6% year over year. The decline was on account of a 20% decline in organic volume, 4% adverse impact of forex woes and a 1% decrease in pricing.
Enersys Price, Consensus and EPS Surprise
Enersys price-consensus-eps-surprise-chart | Enersys Quote
Margins Details
In the quarter, EnerSys’ cost of goods sold was $582.9 million, down 0.9% year over year. It represented 74.6% of net sales. Gross profit decreased 0.7% to $200.8 million, while margin increased 30 basis points to 25.7%.
Operating expenses were $133.8 million, representing 17.1% of net sales. Total operating earnings decreased 42.5% to $20.1 million.
Balance Sheet and Cash Flow
Exiting fiscal 2020, EnerSys had cash and cash equivalents of $327 million compared with $299.2 million at the end of the previous fiscal year. As of Mar 31, 2020, the company’s long-term debt (net of unamortized debt issuance costs) was $1,104.7 compared with $971.8 million at the end of fiscal 2019.
During fiscal 2020, it generated net cash of $253.4 million from operating activities. Capital expenditure totaled $101.4 million compared with $70.4 million incurred in the previous fiscal year.
Outlook
The company anticipates witnessing uncertainties related to the coronavirus pandemic in the near term. However, it expects to see opportunities from communications and defense customers.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Industrial Products sector are Intellicheck, Inc. (IDN - Free Report) , Alcoa Corporation (AA - Free Report) and Broadwind Energy Inc. (BWEN - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.
Alcoa delivered a positive earnings surprise of 12.78%, on average, in the trailing four quarters.
Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>