Company Overview - EnerSys (ENS) is positioned as an intriguing investment choice within the Manufacturing - Electronics sector due to solid earnings estimate revisions and favorable industry ranking [1][3]. - The company has experienced a positive shift in earnings estimates, indicating a more bullish outlook from analysts for both short-term and long-term prospects [3]. Industry Analysis - The Manufacturing - Electronics industry currently holds a Zacks Industry Rank of 18 out of over 250 industries, suggesting a strong position relative to other sectors [2]. - Broad trends within the industry are likely benefiting multiple securities, indicating a rising tide effect that could enhance overall performance [2]. Earnings Estimates - Over the past month, current quarter earnings estimates for EnerSys have increased from $1.90 per share to $1.96 per share, while current year estimates have risen from $8.41 per share to $8.74 per share [4]. - These revisions have contributed to EnerSys earning a Zacks Rank 2 (Buy), highlighting its solid market position [4]. Investment Consideration - EnerSys is recommended as a strong pick in a robust industry, supported by recent estimate revisions and its favorable industry ranking [5].

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>. Earnings Estimate Revisions for EnerSys Harnessing the Power of Earnings Estimate Revisions As ...

Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of EnerSys (ENS) and Zurn Water (ZWS) . 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 is a proven st ...

Core Insights - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics, helping investors identify potential outperformers in the market [2][4][14]. Value Investing - The Value Style Score focuses on identifying stocks that are undervalued based on financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, aiming to find attractive investment opportunities [5]. Growth Investing - The Growth Style Score assesses projected and historical earnings, sales, and cash flow to identify stocks with sustainable long-term growth potential, with EnerSys (ENS) being highlighted for its forecasted year-over-year earnings growth of 4.7% for the current fiscal year [2][11]. Momentum Investing - The Momentum Style Score is designed to capitalize on trends in stock prices or earnings outlooks, utilizing metrics like one-week price changes and monthly earnings estimate changes to identify optimal entry points for investments [6]. VGM Score - The VGM Score combines the Value, Growth, and Momentum Style Scores, serving as a comprehensive indicator for investors looking to balance these three investment styles [7]. Zacks Rank - The Zacks Rank is a proprietary stock-rating model that has shown strong historical performance, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8]. EnerSys (ENS) Overview - EnerSys is engaged in manufacturing and distributing industrial batteries, battery chargers, and related equipment, and has a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [19][25]. - Recent analyst activity shows two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.12 to $8.74 per share, and ENS has an average earnings surprise of 2.7% [20].

Enersys (ENS) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ENS's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross." There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a gol ...

EnerSys (ENS) has been witnessing solid momentum in its Motive Power segment, supported by strong orders for its products in electric industrial forklift trucks market. The segment's revenues increased 3% year over year in the fourth quarter of fiscal 2024 (ended March 2024). The global megatrends including 5G expansion, rural broadband build-outs, electrification, automation and decarbonization are expected to support the company's growth in the quarters ahead. EnerSys intends to strengthen and expand its ...

From the end of trading last Friday through the market's close Thursday, shares of Enersys and Ameresco were up 12% and 17.8%, respectively, while Lithium Americas stock was down by 15%. While some green energy stocks are charging higher, one lithium stock is the subject of considerable skepticism. What's powering the bulls' buying activity? While the S&P 500 is on course to end the week lower than where it began, shares of battery stock EnerSys (ENS -0.94%) and energy-efficiency leader Ameresco (AMRC 5.17% ...

Enersys (ENS) reported fourth-quarter fiscal 2024 (ended Mar 31, 2024) adjusted earnings of $2.08 per share, which surpassed the Zacks Consensus Estimate of $2.02. The bottom line surged 14.3% year over year due to lower sales costs. Enersys' total revenues of $911 million beat the consensus estimate of $900 million. The top line declined 8% year over year due to temporary spending pauses in telecom and broadband. Organic sales decreased 7% and foreign currency translation had an adverse impact of 1% on sal ...

Core Insights - EnerSys reported revenue of $910.7 million for the quarter ended March 2024, marking an 8% year-over-year decline, while EPS increased to $2.08 from $1.82 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $899.77 million by 1.22%, and the EPS also surpassed the consensus estimate of $2.02 by 2.97% [1] Financial Performance Metrics - Specialty Net Sales were $146.50 million, slightly above the average estimate of $144.55 million, reflecting a year-over-year decline of 1.1% [4] - Motive Power Net Sales reached $394.80 million, exceeding the average estimate of $366.22 million, with a year-over-year increase of 2.9% [4] - Energy Systems Net Sales were reported at $369.40 million, below the estimated $377.90 million, showing a significant year-over-year decline of 19.4% [4] - Operating Earnings for Energy Systems were -$4.90 million, contrasting with the average estimate of $14.58 million from analysts [4] - Operating Earnings for Motive Power were $53.90 million, slightly above the average estimate of $53.83 million [4] - Operating Earnings for Specialty were $6.70 million, below the average estimate of $8.49 million [4] Stock Performance - EnerSys shares have returned +6.3% over the past month, while the Zacks S&P 500 composite increased by +7.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance compared to the broader market in the near term [3]

Risk Management and Hedging - The company has entered into lead forward purchase contracts and foreign exchange contracts to manage risks associated with fluctuations in raw material costs, foreign currency exchange rates, and interest rates, with liabilities at $20.9 million and assets at $3.6 million as of March 31, 2024[304]. - The company hedges approximately 10% - 15% of its known foreign exchange transactional exposures, primarily through foreign currency exchange contracts[313]. - The company has cross-currency fixed interest rate swap contracts with a notional amount of $150 million, maturing on December 15, 2027, to hedge against exchange rate volatility[305]. - A 100 basis point increase in interest rates would have increased annual interest expense by approximately $0.4 million on the variable rate portions of the company's debt[308]. - An unfavorable 10% movement in exchange rates would have adversely changed hedge valuations by approximately $29.5 million as of March 31, 2024[316]. - The company has established a hedging and risk management program to manage market and counterparty risk, including credit review and portfolio stress tests[386]. - The company entered into foreign currency forward contracts totaling $46,159 as of March 31, 2024, up from $45,823 in 2023, indicating a slight increase in hedging activity[492]. - Interest rate swap agreements effectively convert $200,000 of variable-rate debt to a fixed-rate basis as of March 31, 2024, maintaining the same amount as in 2023[493]. - The total liabilities related to net investment hedges were $19,167 as of March 31, 2024, compared to $15,760 in 2023, indicating an increase in hedging liabilities[499]. - The company reported a pretax loss of $846 from foreign currency forward contracts not designated as hedging instruments for the fiscal year ended March 31, 2024[502]. Financial Performance - Net sales for the fiscal year ended March 31, 2024, were $3,581.9 million, a decrease of 3.4% from $3,708.6 million in 2023[345]. - Gross profit increased to $982.9 million in 2024, up from $840.1 million in 2023, reflecting a gross margin improvement[345]. - Operating earnings rose to $351.6 million in 2024, compared to $278.4 million in 2023, marking a 26.3% increase[345]. - Net earnings attributable to EnerSys stockholders were $269.1 million for 2024, a significant increase of 53.1% from $175.8 million in 2023[345]. - Basic net earnings per share increased to $6.62 in 2024, up from $4.31 in 2023, representing a 53.6% growth[345]. - Cash flows from operating activities increased to $457,029,000 in 2024, compared to $279,938,000 in 2023, indicating a significant improvement in operational efficiency[353]. - The company recognized a benefit of $136.4 million to cost of sales related to the tax credit under Section 45X of the Internal Revenue Code for the year ended March 31, 2024[326]. Assets and Liabilities - Total assets decreased to $3,466.0 million as of March 31, 2024, down from $3,616.7 million in 2023[343]. - Total liabilities decreased to $1,708.9 million in 2024, compared to $2,012.8 million in 2023, indicating improved financial health[343]. - Retained earnings increased to $2,163.9 million in 2024, up from $1,930.1 million in 2023, reflecting strong profitability[343]. - The company had $333.3 million in cash and cash equivalents deducted from the calculation of net debt for fiscal 2024[306]. - Long-term debt net of unamortized issuance costs decreased to $801,965 as of March 31, 2024, from $1,041,989 as of March 31, 2023, a reduction of 23.0%[448]. - The company’s total liabilities increased, with net borrowings on short-term debt showing a repayment of $231,000 in 2024, compared to a repayment of $21,719,000 in 2023[353]. Shareholder Returns - Dividends per common share increased to $0.85 in 2024, up from $0.70 in 2023, indicating a commitment to returning value to shareholders[345]. - The company purchased treasury stock amounting to $95,688,000 in 2024, compared to $22,907,000 in 2023, reflecting a strategic move to enhance shareholder value[353]. Inventory and Receivables - Total inventory decreased to $697,698 as of March 31, 2024, down from $797,798 in 2023, representing a reduction of about 12.5%[439]. - As of March 31, 2024, total accounts receivable decreased to $532,832 from $646,592 in 2023, reflecting a decline of approximately 17.6%[433]. - The company sold $710,746 of accounts receivables during fiscal 2024, with net proceeds equal to the sale amount, indicating effective cash flow management[436]. Tax and Compliance - The Company accounts for income taxes using the asset and liability approach, recognizing deferred tax assets and liabilities based on enacted tax rates[395]. - The Company has elected the period cost method for GILTI tax rules, treating taxes due on future US inclusions in taxable income as a current-period expense[399]. - The Inflation Reduction Act resulted in a reduction of costs of goods sold and income tax payable of $136,360 in fiscal 2024, compared to $17,283 in fiscal 2023[403]. Goodwill and Intangible Assets - Indefinite-lived intangible assets were valued at $130.2 million as of March 31, 2024, and are tested for impairment annually[331]. - Goodwill balance as of March 31, 2024, is $682,934, an increase from $676,715 as of March 31, 2023, reflecting a net increase of $6,219[442]. - The estimated tax-deductible goodwill is approximately $78,147 as of March 31, 2024, down from $86,709 as of March 31, 2023, indicating a decrease of 9.0%[445]. - The Company did not record any impairment relating to its goodwill during fiscal 2024, 2023, and 2022[443]. Lease and Operating Expenses - Operating lease expense for fiscal 2024 was $28,030, up from $20,232 in 2023, indicating a year-over-year increase of about 38.5%[431]. - The company recognized total lease expense of $48,131 for fiscal 2024, compared to $34,463 in 2023, representing a significant increase of approximately 39.6%[431]. - The right-of-use assets for operating leases decreased to $76,413 in 2024 from $85,237 in 2023, a decline of about 10.5%[431]. Capital Expenditures and Investments - Capital expenditures for the fiscal year 2024 were $86,437,000, slightly lower than $88,772,000 in 2023[353]. - The Company issued $300,000 in aggregate principal amount of 6.625% Senior Notes due January 15, 2032, with proceeds used to pay down the Fourth Amended Credit Facility[452].