Enersys (ENS) 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 ...

EnerSys (ENS) reported $852.9 million in revenue for the quarter ended June 2024, representing a year-overyear decline of 6.1%. EPS of $1.98 for the same period compares to $1.89 a year ago. The reported revenue represents a surprise of -2.81% over the Zacks Consensus Estimate of $877.57 million. With the consensus EPS estimate being $1.97, the EPS surprise was +0.51%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

Acquisition and Investments - EnerSys completed the acquisition of Bren-Tronics Defense LLC for $208 million in cash on July 26, 2024[112]. - The Company issued $300 million in aggregate principal amount of 6.625% Senior Notes due 2032, with proceeds used to pay down the Fourth Amended Credit Facility[125]. - The Company purchased 129,433 shares for $11.6 million during the current quarter of fiscal 2025[125]. Financial Performance - Net sales decreased by $55.7 million or 6.1% in Q1 fiscal 2025 compared to Q1 fiscal 2024, attributed to a 3% decrease in organic volume, a 2% decrease in price/mix, and a 1% decrease in foreign currency translation[127]. - Energy Systems segment sales decreased by $63.6 million or 15.0% in Q1 fiscal 2025 compared to Q1 fiscal 2024, driven by an 11% decrease in organic volume[128]. - Motive Power segment sales increased by $15.4 million or 4.4% in Q1 fiscal 2025 compared to Q1 fiscal 2024, primarily due to a 6% increase in organic volume[129]. - Gross profit decreased by $1.9 million or 0.8% in Q1 fiscal 2025 compared to Q1 fiscal 2024, but gross profit margin increased by 160 basis points[130]. - Operating expenses increased by $3.4 million or 2.4% in Q1 fiscal 2025 compared to Q1 fiscal 2024, with operating expenses as a percentage of sales increasing by 60 basis points[132]. - Operating earnings increased by $1.9 million or 2.1% in Q1 fiscal 2025 compared to Q1 fiscal 2024, with operating earnings as a percentage of net sales rising by 90 basis points[144]. - Net earnings for Q1 fiscal 2025 were $70.1 million, compared to $66.8 million in Q1 fiscal 2024, reflecting a year-over-year increase of approximately 4.9%[154]. Cash Flow and Liquidity - EnerSys has $344 million of available cash and cash equivalents and undrawn committed credit lines of approximately $782 million at June 30, 2024[122]. - Operating activities provided cash of $10.4 million in Q1 fiscal 2025, a decrease from $74.9 million in Q1 fiscal 2024, primarily due to changes in accounts receivable and inventory[154]. - Investing activities used cash of $47.0 million in Q1 fiscal 2025, up from $24.3 million in Q1 fiscal 2024, mainly due to capital expenditures of $36.1 million[155]. - Financing activities provided cash of $50.9 million in Q1 fiscal 2025, with $65.0 million borrowed under the Second Amended Revolver[155]. - Total cash and cash equivalents increased by $10.7 million to $344.1 million in Q1 fiscal 2025, compared to a decrease of $88.3 million to $258.3 million in Q1 fiscal 2024[157]. - The company is in compliance with all covenants and conditions under its Fourth Amended Credit Facility and believes it has the financial resources for future growth and acquisitions[161]. Market Conditions and Pricing - The company anticipates inflationary pressures and elevated interest rates to continue through calendar 2024[113]. - Approximately 25% of EnerSys' revenue is now subject to agreements that adjust pricing to a market-based index for lead[116]. - The company expects selling prices to be higher in fiscal 2025 compared to fiscal 2024 due to inflationary cost increases[117]. - The market demand in the Motive Power segment remains healthy, but there was a decrease in demand in the Class 8 truck market impacting the Specialty segment[114]. - Approximately 46% of the cost of lead requirements is known for the remaining quarter of the fiscal year, with a potential $17 million increase in cost of goods sold if lead prices rise by 10%[169]. Interest and Taxation - Interest expense decreased to $11.0 million in Q1 fiscal 2025, down $4.2 million or 27.9% from $15.2 million in Q1 fiscal 2024, attributed to lower borrowing levels[146][147]. - Earnings before income taxes increased by $5.8 million or 7.9% in Q1 fiscal 2025, reaching $79.3 million compared to $73.5 million in Q1 fiscal 2024[148]. - Income tax expense rose to $9.2 million in Q1 fiscal 2025, an increase of $2.5 million or 36.9% from $6.7 million in Q1 fiscal 2024, with an effective tax rate of 11.6%[149][151]. - The consolidated effective income tax rate increased from 9.2% in Q1 fiscal 2024 to 11.6% in Q1 fiscal 2025, primarily due to a discrete foreign exchange tax benefit and the impact of Pillar 2[151]. - The foreign effective tax rates for Q1 fiscal 2025 and 2024 were 14% and 12%, respectively, with the increase attributed to the impact of Pillar 2[152]. Operational Changes - The Company recorded restructuring charges of $3.0 million in the Energy Systems segment and $0.8 million in the Motive Power segment during Q1 fiscal 2025[134]. - The Company plans to stop production of residential renewable energy products, estimating total charges of $24.5 million related to this decision[134]. - Energy Systems operating earnings decreased by 170 basis points in Q1 fiscal 2025 due to lower volumes and unfavorable price/mix, partially offset by lower freight and operating costs[144]. - Motive Power operating earnings increased by 90 basis points in Q1 fiscal 2025, driven by volume growth and favorable pricing/mix gains[144]. - Specialty operating earnings decreased by 350 basis points in Q1 fiscal 2025, primarily due to lower volumes in transportation OEMs[145]. Currency and Foreign Exchange - The company has entered into foreign currency forward contracts to hedge approximately 5% - 10% of its known annual foreign exchange transactional exposures[172]. - Currency translation negatively impacted cash balance by $3.6 million in Q1 fiscal 2025, compared to a $3.0 million impact in Q1 fiscal 2024[156]. - As of June 30, 2024, a 10% unfavorable movement in exchange rates would have adversely changed hedge valuations by approximately $28.2 million[174]. - As of July 2, 2023, a similar 10% unfavorable movement would have changed hedge valuations by approximately $27.7 million[174]. Internal Controls and Compliance - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures are effective as of the end of the reporting period[175]. - There were no changes in internal control over financial reporting during the quarter that materially affected the company's financial reporting[175].

Analysts on Wall Street project that EnerSys (ENS) will announce quarterly earnings of $1.97 per share in its forthcoming report, representing an increase of 4.2% year over year. Revenues are projected to reach $877.57 million, declining 3.4% from the same quarter last year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Ahead of a c ...

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, focusing on fundamental analysis to find undervalued companies [1] Company Summary - Enersys (ENS) has a Price-to-Book (P/B) ratio of 2.48, which is lower than the industry average of 4.10, indicating potential undervaluation [2] - Over the past 52 weeks, ENS's P/B ratio has fluctuated between 2.05 and 2.64, with a median of 2.29, suggesting stability in its valuation metrics [2] - The stock is currently rated with a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [6] - ENS has a Price-to-Earnings (P/E) ratio of 11.86, significantly lower than the industry average of 24.34, further supporting the notion of undervaluation [6] - The Forward P/E ratio for ENS has ranged from 9.92 to 17.12 over the past year, with a median of 11.17, reflecting its earnings outlook [6] - The Price-to-Sales (P/S) ratio for ENS is 1.23, compared to the industry average of 3.15, reinforcing its attractiveness as a value stock [7] Industry Summary - The industry average P/B ratio stands at 4.10, while the average P/E ratio is 24.34, indicating that ENS is trading at a discount relative to its peers [2][6] - The average P/S ratio in the industry is 3.15, highlighting the potential for ENS to be considered a strong value investment based on sales performance [7]

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has EnerSys (ENS) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. EnerSys is one of 218 individual stocks in the Industrial Products sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Ran ...

Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS) and Eaton (ETN) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earni ...

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EnerSys (ENS) is poised to gain from strength in the Motive power segment, accretive acquisitions and shareholder-friendly moves. In the quarters ahead, EnerSys is poised to benefit from its solid product offerings, a firm focus on product innovation (including lithium, Touch-Safe, CPUC and DC fast charge) and strengthening demand. Technological expertise and effective pricing are other tailwinds. The company strengthened its position as a leading provider of NexSys Thin Plate Pure Lead products in the past ...

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